X, the social media platform formerly known as Twitter, is the latest U.S. technology company under scrutiny by the European Commission.
Margrethe Vestager, the EU’s tech regulation chief, asserts that X fails to meet the standards set by the Digital Services Act (DSA), specifically in areas related to dark patterns, advertising transparency, and data access for researchers.
On Friday, EU regulators concluded that X had violated EU online content rules, including misleading users with its blue checkmark verification system. The charges are the first issued under the DSA, following a seven-month investigation. It is interesting to note that blue checkmark verification system from X has become a paid business under Elon Musk.
EU tech regulators have identified three areas that require significant attention from X. All these three areas are used by X to generate customers and billions of revenue in return.
Key Areas of Non-Compliance
#1 Verified Accounts and Blue Checkmarks
X’s current system for “verified accounts” with the blue checkmark allows any subscriber to obtain this status, which misleads users about the authenticity of accounts on the digital platform. This practice diverges from industry norms and enables malicious actors to deceive users.
After buying the Twitter platform in 2022, Elon Musk altered the use of the blue checkmark, which previously indicated that an account belonged to a public figure whose identity was verified but was changed to indicate it belonged to a paid subscriber.
#2 Advertising Transparency
X, the leading digital platform which lost several million subscribers after moving to Elon Musk, has failed to comply with a DSA requirement to provide searchable and reliable information about advertisements in a library for easy access. Instead, its design obstructs transparency, hindering supervision and research into online advertising risks.
#3 Data Access for Researchers
X restricts eligible researchers from accessing its public data, violating DSA conditions. The platform’s terms of service prohibit independent data scraping, and its API access process imposes disproportionate fees, discouraging legitimate research.
Background and Potential Penalties
Elon Musk’s acquisition of the platform in 2022 led to changes in the blue checkmark policy. Previously, it indicated a verified public figure, but it now signifies a paid subscriber.
European Commission requires X to provide accessible information about advertisements in a user-friendly library, a requirement it has also failed to meet. X has several months to respond to these charges and could face fines up to 6 percent of its global turnover if found guilty. X does not reveal its financial performance.
EU industry chief Thierry Breton stated, “X has the right of defence — but if our view is confirmed, we will impose fines and require significant changes.”
Elon Musk, known for his outspoken responses, questioned the EU’s actions on X, writing, “How we know you’re real?”
In a response on X to EU antitrust chief Margrethe Vestager, Elon Musk wrote: “European Commission offered X an illegal secret deal: if we quietly censored speech without telling anyone, they would not fine us. The other platforms accepted that deal. X did not.”
Ongoing Investigations and Wider Implications
The Commission is conducting separate investigations into illegal content dissemination and disinformation measures on the X digital platform. Additionally, other tech giants like ByteDance’s TikTok, AliExpress, and Meta Platforms are under similar scrutiny under the DSA.
This development marks a significant enforcement of the DSA, aiming to ensure large online platforms adhere to stringent content and transparency standards to protect users and researchers alike.
Baburajan Kizhakedath
