Elon Musk's X in Trouble

EU Accuses X of Breaching Digital Services Act

The European Commission has initiated formal proceedings against Elon Musk's social media platform X, accusing it of violating the EU's Digital Services Act (DSA) in several areas. 

This marks the first such action taken against a tech company under the new law.

Blue Checkmark Controversy

The Commission's preliminary findings indicate that X's implementation of the blue verification checkmark system deviates from industry standards. The platform allows anyone to obtain verified status through a paid subscription, rather than the previous exclusive use for high-profile accounts. This practice is seen as a "dark pattern" that can be exploited by "motivated malicious actors" to mislead users about account authenticity.

Lack of Advertising Transparency

The Commission also found that X fails to comply with the DSA's transparency requirements for advertising. The platform refuses to provide a searchable repository that would allow proper scrutiny of its ad practices. This lack of transparency raises concerns about the potential for illegal or misleading advertising on the platform.

Restrictions on Researcher Access to Data

Furthermore, the Commission accuses X of hindering independent researchers' access to its data. The platform's process for obtaining API access is designed to "dissuade" researchers from obtaining the necessary data, potentially limiting the ability of researchers to study and analyze the platform's content and user behavior.

Potential Fines and Consequences

If the Commission's findings are upheld, X could face fines of up to 6% of its global revenue. The platform now has the opportunity to respond to the preliminary conclusions before the Commission potentially issues a non-compliance ruling.

Broader Implications for the Tech Industry

The conflict between X and the EU regulators is part of a broader push for stricter oversight of digital platforms under the DSA. Other tech giants, such as Meta, TikTok, and AliExpress, are also facing scrutiny for potential breaches of the new regulations. 

The outcome of the X case could set a precedent for future enforcement actions and influence how social media companies operate within the EU.

Reference:

European Commission, "Digital Services Act (DSA)"