Elon Musk’s social media company, X, has found itself in hot water with European Union regulators. The European Commission ruled on Friday that X breached the EU’s online content regulations and misled users with its blue checkmark system. This landmark decision, the first under the Digital Services Act (DSA), could result in substantial fines and significant operational changes for the company.
The European Commission’s charges come after a seven-month investigation into X’s compliance with the DSA. This new legislation mandates that large online platforms and search engines take proactive steps to address illegal content and safeguard public security. The preliminary findings highlighted several issues with X’s practices, including so-called dark patterns that manipulate user behavior, a lack of transparency in advertising, and restricted data access for researchers.
In response to the charges, X has strongly contested the EU’s assessment of its DSA compliance. Elon Musk, the company’s owner, has threatened legal action, stating, “We look forward to a very public battle in court, so that the people of Europe can know the truth.” He further alleged that the Commission offered X a secret deal to censor speech, which the company refused, unlike other unnamed platforms.
EU industry chief Thierry Breton firmly denied Musk’s allegations of a secret deal. “Be our guest,” he retorted on X. “There has never been — and will never be — any ‘secret deal’. With anyone. The DSA provides X (and any large platform) with the possibility to offer commitments to settle a case.” Breton emphasized the importance of legal procedures and invited X to either settle or face court proceedings.
The Commission also criticized X’s verified accounts system, which uses a blue checkmark. This symbol, initially designed to confirm the authenticity of public figures, was altered by Musk to signify paid subscribers. The EU claims this change misleads users and hampers their ability to make informed decisions about the authenticity of accounts they interact with.
Additionally, the Commission pointed out X’s failure to comply with the DSA requirement for maintaining a searchable and reliable advertisement library. This omission hinders users’ ability to access information about advertisements, a key aspect of transparency under the DSA.
X has also been accused of obstructing researchers’ access to its public data, a move that contravenes DSA stipulations. Should X be found guilty of these breaches, the company could face a fine amounting to as much as 6% of its global turnover. The company has several months to respond to these charges.
Further investigations by the Commission into the dissemination of illegal content on X and the company’s efforts to combat disinformation are ongoing. Other tech giants, including ByteDance’s TikTok, AliExpress, and Meta Platforms, are also under scrutiny as part of the DSA’s broader regulatory efforts.