EU Charges Social Media Platform X with Misleading Practices and Regulatory Breaches

Monday 15 July 2024 - 11:30

The European Union has formally accused social media platform X, formerly known as Twitter, of engaging in deceptive practices and violating the bloc’s new social media regulations under the Digital Services Act (DSA).

The European Commission’s preliminary findings, revealed on Friday, represent the first charges against a major tech firm since the DSA came into effect, according to the Associated Press.

A central issue highlighted by the EU is X’s blue checkmark system. The Commission argues that this system, which allows users to purchase a blue checkmark for $8 per month, constitutes "dark patterns" that malicious actors can exploit to deceive users. Historically, blue checkmarks were reserved for verified celebrities, politicians, and influential figures, but changes implemented under Elon Musk’s ownership have democratized verification, potentially compromising users’ ability to discern the authenticity of accounts and content.

Additionally, the Commission has accused X of failing to meet ad transparency requirements. These rules mandate that platforms maintain a searchable and reliable database of all digital advertisements they have hosted. The Commission contends that X’s ad database has design flaws and access barriers that undermine its purpose of transparency.

The EU further alleges that X falls short in providing researchers with necessary access to public data, a critical component of the DSA designed to facilitate scrutiny of platform operations and online risk evolution. The Commission noted that researchers face significant obstacles when attempting to access data, including prohibitive costs and a cumbersome request process that deters independent research.

In response to these allegations, Musk asserted that the European Commission offered X an "illegal secret deal" to censor speech without public disclosure, a deal which he claims X refused while other platforms accepted.

The EU’s investigation into X is ongoing, with regulators continuing to assess the platform’s efforts to curb illegal content and combat information manipulation. X has the opportunity to respond to the charges and implement changes to comply with the DSA. Failure to meet the Commission’s requirements could result in penalties up to 6% of the company’s annual global revenue and mandates to rectify the identified issues.

This developing situation underscores the increasing scrutiny tech companies face under stringent regulatory frameworks aimed at ensuring transparency and accountability in the digital age.