Elon Musk’s social-media platform X, previously known as Twitter, has been found in breach of the European Union’s (EU) online-content law, according to a preliminary decision from the European Commission. This development could result in a significant financial penalty for the company, as revealed by a Wall Street Journal report on Friday.
The decision is the result of a comprehensive investigation into X’s compliance with the Digital Services Act (DSA), which imposes stringent requirements on major online platforms to manage illegal content and maintain transparency in content moderation and advertising practices. The European Commission identified three key areas where X’s practices fell short of the DSA’s standards, potentially exposing the company to a fine of up to 6% of its total global annual revenue.
One of the primary concerns is the design and implementation of X’s blue checkmark verification system. Unlike the previous system where checkmarks were assigned to users deemed authentic and notable, the new model allows any user to purchase a blue checkmark, misleadingly presenting them as verified. The Commission argued that this practice undermines users’ ability to discern the authenticity of accounts and the content they engage with.
Read more: Elon Musk’s X Faces Pushback from Republicans Over Antitrust Concerns
Furthermore, the Commission criticized X for failing to comply with advertising transparency rules. It highlighted that X does not provide adequate access to its advertisement repository, making it difficult for users to identify advertisers and view related information such as targeting data and creative content.
The third issue involves the accessibility of public data for researchers. According to the Commission, X restricts eligible researchers from independently accessing its public data, which hampers research and analysis efforts.
These findings are not final, and X now has the opportunity to respond to the Commission’s concerns. If the preliminary findings are confirmed, X could face an enhanced supervision period to ensure compliance, along with periodic penalty payments to enforce adherence to the DSA regulations.
Sourse: The Wall Street Journal
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