The European Commissioner has accused Elon Musk’s social media platform X, formerly known as Twitter, of misleading its users.
The allegation stems from preliminary findings by regulators that suggest X is in violation of the European Union’s Digital Services Act (DSA). The executive arm of the EU, Thierry Breton, announced on Friday that the platform is not adhering to regulations concerning “dark patterns,” advertising transparency, and data access for researchers.
These findings have significant implications for X, as non-compliance with the DSA can lead to substantial fines and other penalties.
Back in the day, #BlueChecks used to mean trustworthy sources of information✔️🐦
Now with X, our preliminary view is that:
❌They deceive users
❌They infrige #DSA
X has now the right of defence —but if our view is confirmed we will impose fines & require significant changes. pic.twitter.com/M9tGA5pYQr
— Thierry Breton (@ThierryBreton) July 12, 2024
X faces allegations of deceptive practices
The investigation into X’s practices began in December 2023, scrutinizing the platform’s adherence to the DSA. According to the Commission, one of the major issues lies in the misuse of the “blue checkmark” verification feature. Unlike traditional industry practices where verification signifies authenticity, X allows anyone to subscribe and obtain this status. This approach has led to confusion among users, affecting their ability to discern the authenticity of accounts and content. The Commission highlighted that malicious actors have exploited this system, further deceiving users.
In addition to the verification concerns, the Commission found that X is not meeting the required standards for advertising transparency. The platform has failed to provide a reliable and searchable repository of advertisements, which is a key requirement under the DSA. This lack of transparency prevents users from making informed decisions and undermines the regulatory framework designed to ensure fairness and accountability in online advertising.
Failure to support research transparency
Another critical area where X is allegedly falling short is in providing access to public data for researchers. The DSA mandates that large online platforms grant independent researchers access to their data to facilitate studies on various societal impacts, including misinformation and public safety. However, the Commission’s findings indicate that X has designed its processes in a way that discourages researchers from accessing its application programming interface (API). This obstruction hampers efforts to conduct independent research and analyze the platform’s influence on public discourse.
The lack of support for researchers not only violates the DSA but also raises concerns about X’s commitment to transparency and accountability. The ability of researchers to scrutinize and understand the dynamics of social media platforms is crucial for addressing issues such as misinformation, election interference, and other public safety threats. By impeding access to data, X is undermining these essential research efforts.
Potential consequences and next steps
Following these preliminary findings, X has the opportunity to review the Commission’s report and submit a formal response. The platform’s response will be critical in determining the next steps and potential penalties. European Commissioner Thierry Breton emphasized that X has the right to defend itself, but if the findings are confirmed, the company could face fines of up to 6% of its total worldwide annual turnover. Given that Elon Musk delisted the company after acquiring Twitter in 2022, its financial performance data is no longer publicly available, adding another layer of complexity to the situation.
In addition to financial penalties, the Commission has the authority to impose periodic penalty payments and enforce periods of enhanced supervision to ensure compliance with the DSA. The overarching goal of the DSA is to enhance transparency and accountability among large online platforms, ensuring they operate in a manner that protects users and upholds public safety.
The outcome of the Commission’s investigation into X will be closely watched, as it will set a precedent for how other platforms are held accountable under the DSA. For now, the spotlight remains on X as it navigates these regulatory challenges and addresses the allegations of misleading its users.
In 2024, the Commission also opened formal proceedings against other major companies, including TikTok, AliExpress, and Meta.
Featured image credit: Emre Çıtak/Bing Image Creator
