The European Union has recently found that social media platform X’s blue checkmark verification system violates rules under the bloc’s Digital Services Act (DSA). The EU investigation revealed that X is not complying with transparency obligations regarding advertising and providing public data to researchers. This is a significant breach of the DSA, as it goes against established industry practices and can be misleading for users.
One of the key issues pointed out by the EU is the misuse of X’s blue check verification system, which allows any user to pay to be “verified.” This system prevents users from determining the authenticity of other accounts they interact with, leading to confusion and potential deception. The EU also found evidence of malicious actors abusing the system to intentionally mislead users, further emphasizing the need for transparency and accountability.
If X fails to address the European Commission’s grievances and make the necessary changes to comply with the DSA, the company could face formal action and fines of up to six percent of its global revenue. As a Very Large Online Platform (VLOP) under the DSA, X reaches more than 45 million monthly active users in the EU, making it subject to strict enforcement measures. Despite being a private company purchased by Elon Musk for $44 billion, the financial penalties for non-compliance could still have a significant impact on X.
The Commission’s multifaceted DSA investigation into X, opened on December 18th, 2023, is still ongoing. In addition to the issues of deceptive practices, advertising transparency, and data access for researchers highlighted in the preliminary findings, the investigation is also looking into the dissemination of illegal content on the platform and its moderation practices. This comprehensive approach reflects the EU’s commitment to enforcing stringent rules for big tech companies and holding them accountable for their actions.
The crackdown on social media platform X is part of the EU’s broader efforts to ramp up enforcement of its strict rules for big tech companies. Separate DSA probes have been launched to assess whether Meta, the parent company of Facebook and Instagram, has taken sufficient measures to moderate political, deceptive, or illegal content on its platforms. Additionally, the EU is looking into how these platforms safeguard children who use their services, signaling a more proactive approach to regulation and oversight in the digital space.
The European Union’s warning to social media platform X over its violations of the Digital Services Act underscores the importance of transparency, accountability, and compliance with established industry standards. The findings of the investigation highlight the need for platforms to be more diligent in their practices, especially when it comes to user verification, advertising transparency, and data access for researchers. Moving forward, it will be crucial for companies like X to address these issues and work towards ensuring full compliance with EU legislation to avoid potential fines and legal repercussions.
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