EU Investigates X for Violations of Digital Services Act

Written by Kathrine Frich

Jul.13 - 2024 3:24 PM CET

Business
Photo: Frederic Legrand - CAMEO / Shutterstock.com
Photo: Frederic Legrand - CAMEO / Shutterstock.com
Brussels has issued a statement of objections to X for violating the EU's Digital Services Act (DSA),

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The European Commission continues to scrutinize the practices of major digital platforms, with the social media platform X, formerly known as Twitter, now in its sights.

Statement of Objections

According to El Economista Brussels has issued a statement of objections to X for violating the EU's Digital Services Act (DSA), citing that its blue verification checks deceive consumers.

"Previously, blue checks indicated reliable sources of information. Now, with X, our preliminary view is that they mislead users and violate the DSA," stated Thierry Breton, Commissioner for the Internal Market. He emphasized that if these findings are confirmed, Brussels will impose fines and demand significant changes.

The European Commission's investigation concluded that the verified accounts marked by blue checks mislead users. Since anyone can obtain verification, users cannot make informed decisions about the authenticity of accounts and the content they interact with. Additionally, there is evidence that malicious actors exploit verified accounts to deceive users.

Non-Compliance Decision

Moreover, the social media platform, led by Elon Musk, fails to comply with EU transparency regulations regarding advertisements. X does not provide a reliable ad repository and creates barriers that prevent user clarity. Specifically, the design impedes oversight of online ad distribution.

Furthermore, X does not grant researchers access to its public information according to the digital services regulations. The process appears to discourage researchers by imposing disproportionately high fees.

If the preliminary findings are confirmed, the European Commission could issue a non-compliance decision, potentially resulting in fines of up to 6% of the company's global annual turnover. Additionally, X may be required to take measures to correct these irregularities.

By sending this statement of objections, the European Commission informs X of its preliminary opinion, while X now has the opportunity to exercise its right to defend itself. Margrethe Vestager, Vice President of the European Commission, stated, "X fails to comply with the Digital Services Act in key transparency areas by misleading users, not providing an ad repository, and blocking researcher access to data."