Elon Musk’s social media company X has breached European Union online content rules, with regulators ruling that its blue checkmark deceives users. This finding could lead to hefty fines and significant operational changes.
Investigation Background:
The first charges from the European Commission under the Digital Services Act (DSA) follow a seven-month investigation. The DSA requires large online platforms and search engines to address illegal content and public security risks.
The EU’s preliminary findings against X targeted several issues, including:
- Dark Patterns: Techniques that manipulate user behavior.
- Advertising Transparency: Insufficient clarity regarding ads.
- Data Access for Researchers: Limitations on researchers’ access to data.
X disagreed with the EU’s assessment of its DSA compliance, and Musk threatened legal action. “We look forward to a very public battle in court so that the people of Europe can know the truth,” Musk stated on X.
EU industry chief Thierry Breton responded, denying the existence of any “secret deal” offered to X. He emphasized that the DSA allows platforms to propose commitments to settle cases, stating, “See you (in court or not).”
Issues with Verified Accounts:
The Commission criticized X’s blue checkmark system, stating it does not align with industry standards and misleads users about account authenticity.
Musk changed the checkmark’s purpose to denote paid subscriptions rather than verified public figures after acquiring Twitter in 2022.
Advertising and Data Access Violations:
X has also failed to meet DSA requirements for providing searchable information about advertisements and has blocked researchers from accessing public data.
If found guilty of breaching the DSA, X could face fines of up to 6% of its global turnover. “X now has the right of defense, but if our view is confirmed, we will impose fines and require significant changes,” Breton stated.
Ongoing Investigations:
The European Commission is also investigating the dissemination of illegal content on X and its measures against disinformation. Other companies, including ByteDance’s TikTok, AliExpress, and Meta Platforms, are also under DSA scrutiny.