Recently, the European Union has made a significant accusation against X, stating that its blue checkmark verification system is in violation of the Digital Services Act (DSA). The EU found that X’s verification system is deceptive to users and goes against established industry practices. This marks the first time a company has been formally accused of breaching the DSA at the preliminary findings phase of the EU’s investigatory process.
The EU’s investigation revealed that X is failing to comply with transparency obligations regarding advertising and providing public data to researchers. Furthermore, changes made to X’s blue check system, which allows users to pay for verification, have been criticized for preventing users from determining the authenticity of other accounts they interact with. The EU also found evidence of malicious actors abusing the system to deceive users intentionally.
In response to the findings, EU competition chief Margrethe Vestager stated, “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 EU emphasizes the importance of transparency in the DSA and is determined to ensure that all platforms, including X, comply with EU legislation.
If X fails to address the EU Commission’s grievances, the company could face formal action and fines of up to six percent of its global revenue. As a privately-owned company, purchased by Elon Musk for $44 billion, the exact financial penalties for X remain unclear. X qualifies as a Very Large Online Platform (VLOP) under the DSA due to its large user base in the EU.
The EU’s investigation into X, initiated on December 18th, 2023, is multifaceted and covers deceptive practices, advertising transparency, and data access for researchers. The investigation also includes the dissemination of illegal content on the platform and its moderation practices, particularly in the context of the Israel-Hamas war. While part of the investigation is still ongoing, the EU’s crackdown on X reflects the increased enforcement of strict rules for big tech companies.
The EU’s action against X is part of a broader effort to hold big tech companies accountable for their practices. Similar DSA probes have been launched to assess whether Meta, the parent company of Facebook and Instagram, has adequately moderated political, deceptive, or illegal content on its platforms. Additionally, efforts are being made to safeguard children who use these platforms, highlighting the EU’s commitment to enforcing regulations within the digital sphere.
The European Union’s accusation against X for violating the Digital Services Act underscores the growing scrutiny and enforcement actions aimed at big tech companies. As regulatory bodies seek to uphold transparency, prevent deceptive practices, and protect user data, companies like X are facing increasing pressure to comply with regulatory standards in the digital landscape.
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