EU Charges Elon Musk’s X with Violating Digital Services Act

July 15, 2024
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European regulators have brought charges against Elon Musk’s X for breaching the Digital Services Act (DSA), alleging that the platform misled users and committed other violations. This marks the first instance of the European Commission issuing preliminary findings under the DSA.

The European Commission’s investigation indicates that X failed to comply with key transparency requirements mandated by the DSA. The platform is accused of employing “dark patterns” to mislead users, inadequately maintaining an ad repository, and restricting data access for researchers. Dark patterns are subtle design techniques that nudge users into giving up personal data or making other decisions that benefit the company. For example, companies might highlight an acceptance button for tracking in bright colors while downplaying the opt-out option by minimizing its font size or placement.

Moreover, the European Commission raised concerns about X’s approach to “verified” accounts. The findings suggest that the process for obtaining verified status on X does not align with industry standards and misleads users. Unlike traditional practices where blue checks indicate trustworthy sources, on X, anyone can subscribe to obtain the verified status. This has resulted in malicious actors abusing the blue check to deceive users, undermining the platform’s integrity.

Should the Commission’s preliminary findings be confirmed, X could face a fine of up to 6% of its global annual revenue. This potential penalty underscores the gravity of the alleged violations and the EU’s commitment to enforcing the DSA’s regulations.

The Digital Services Act, which came into effect in August, aims to create a safer and more transparent online environment. It specifically bans dark patterns to ensure that companies cannot subtly manipulate users into actions that compromise their personal data or lead to other unfavorable decisions.

The allegations against X stem from an ongoing investigation launched by EU regulators in December. This probe extends beyond transparency and user deception issues, as regulators are also examining X’s content moderation practices. The investigation seeks to determine whether X has breached the DSA by allowing the dissemination of illegal content and failing to combat misinformation effectively.

The formal investigation began after EU officials started questioning X earlier last year. This inquiry was driven by growing concerns about the presence of Hamas-affiliated accounts on the platform, especially following the terror group’s attacks against Israel on October 7. These concerns highlighted X’s challenges in moderating content and ensuring platform safety and reliability.

X has not responded to requests for comments regarding these allegations. The platform’s silence has only intensified scrutiny and speculation about its compliance with the DSA and its commitment to transparency and user protection.

The Digital Services Act represents a significant advancement in regulating online platforms and protecting users from deceptive practices. By enforcing stringent transparency and content moderation standards, the EU aims to create a safer digital environment where users can trust the information they encounter and feel secure in their online interactions.

As the investigation continues, the focus remains on X and its practices. The outcome of this probe could have far-reaching implications not only for X but also for other digital platforms operating within the EU. The findings serve as a reminder that compliance with the DSA is mandatory, and platforms must prioritize user protection and transparency to avoid severe penalties and maintain their credibility.

The European Commission’s preliminary findings against X underscore significant concerns about the platform’s transparency and content moderation practices. As the investigation progresses, the tech world watches closely, understanding that the enforcement of the Digital Services Act could reshape the landscape of online platform regulation and user protection.

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