The European Union (EU) has stated that Elon Musk’s company, X, has violated the Digital Services Act (DSA) online content regulations.
On Friday, the European Commission alleged that Elon Musk’s X had engaged in deceptive practices and violated digital content regulations, potentially resulting in substantial financial penalties for the social media platform.
The European Commission, the executive branch of the
European Union, initiated an investigation last year to determine whether X is
in violation of the Digital Services Act (DSA). The DSA is a comprehensive
piece of legislation that mandates Big Tech companies to enhance their content
moderation practices on their platforms.
The initial assessment of the situation, made public on
Friday, indicates that X may have violated regulations pertaining to deceptive
design practices, transparency in advertising, and accessibility of data for
research purposes. Deceptive design practices, often referred to as “dark
patterns,” are tactics employed to subtly influence individuals towards
specific products or services.
The commission has expressed concerns regarding X’s
utilization of the blue checkmark for verified accounts, as it deviates from
industry standards. Notably, anyone can subscribe and attain verified status,
raising concerns about potential misuse. Evidence suggests that “motivated
malicious actors” have exploited this verified status to deceive users.
The commission further alleged that X implemented design
features and barriers that impede advertising transparency and does not permit
researchers to access its public data, as mandated by the DSA.
“In our view, X does not comply with the DSA in key
transparency areas, by using dark patterns and thus misleading users, by
failing to provide an adequate ad repository, and by blocking access to data
for researchers,” the European Union’s antitrust chief, Margrethe Vestager,
said in Friday’s statement.
“The DSA has transparency at its very core, and we are
determined to ensure that all platforms, including X, comply with EU
legislation.”
If the commission’s findings are upheld, X may be subject to
a potential financial penalty of up to 6% of its global annual revenue.
“X has now the right of defence — but if our view is
confirmed we will impose fines & require significant changes,” EU industry
chief Thierry Breton said in a post on X.
The commission is also conducting an investigation into
TikTok, Alibaba’s AliExpress, and Meta due to similar concerns.
This action is a result of the EU’s increased scrutiny of
prominent technology companies such as Google and Meta. In 2022, the commission
implemented the Digital Services Act, which places a significant emphasis on
how digital companies target users with advertisements.