Tech billionaire Elon Musk’s X platform has come under scrutiny from Brussels as it was accused of misleading users with its blue checkmark system for certified accounts and violating EU content regulations.
This that finding could potentially lead to substantial fines was revealed on Friday, July 12, 2024.
EU regulators expressed dissatisfaction with the blue badge system since Musk took ownership, noting that it has been revamped to allow anyone to obtain verification through a premium subscription. Previously, verification was reserved for approved accounts, including those of leaders, companies, and journalists.
This formal warning against X marks the first enforcement action under the Digital Services Act (DSA), a comprehensive legislation mandating stricter oversight of digital platforms. The investigation into X was initiated in December 2023.
X now joins Apple and Meta (formerly Facebook) as the third company within weeks to face EU sanctions for breaching digital market rules outlined in the Digital Markets Act (DMA).
Since Musk acquired the platform in October 2022 and rebranded it, his strategic changes have clashed with EU objectives, which aim to enhance user protection and foster digital competition.
The European Commission’s preliminary assessment accuses X of violating the DSA by misleading users with its revised blue badge policies. According to the commission, the platform’s lax verification standards undermine users’ ability to discern the authenticity of accounts and content, potentially exposing them to deceptive practices by malicious actors.
Additionally, X is criticised for failing to comply with advertising transparency rules, lacking a reliable ad database, and obstructing researchers’ access to public data.
Thierry Breton, the EU’s digital chief, affirmed X’s right to defend itself against the allegations but warned that fines under the DSA could reach up to six percent of a company’s global annual turnover, coupled with mandatory operational adjustments to rectify violations.
The investigation into X under the DSA remains expansive, encompassing inquiries into the platform’s handling of illegal content and its effectiveness in combating disinformation.
Alongside Meta’s Facebook and Instagram, as well as TikTok and AliExpress, X is among the 25 “very large” online platforms under scrutiny in the EU for compliance with digital regulations.
The enforcement of the DSA and DMA has intensified since their implementation, reflecting the EU’s robust regulatory approach towards big tech companies.
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