Key Points
- EU Accusation: The EU has accused Elon Musk’s social media platform, X, of misleading users with its blue checkmarks and violating EU content regulations.
- Blue Badge System: Under Musk’s ownership, the blue checkmark can be purchased through a premium subscription, unlike the previous system which required verification for prominent figures and organisations.
- Digital Services Act (DSA): This formal warning is the first under the DSA, a law that requires digital companies to improve content policing. The investigation began in December 2023.
- Recent EU Actions: X is the third company in recent weeks to face EU scrutiny for violating new rules, following warnings to Apple and Meta under the Digital Markets Act (DMA).
- Platform Changes: Since Musk acquired X in October 2022, he has made significant changes, including renaming the platform, which has led to conflicts with EU regulations.
- User Deception: The EU claims that the new blue badge policy deceives users about the authenticity of accounts and content, with evidence of misuse by malicious actors.
- Advertising Transparency: X is also accused of not complying with advertising transparency rules and failing to provide researchers access to public data.
- Potential Fines: If the EU’s findings are confirmed, X could face fines up to six per cent of its total worldwide annual turnover and be required to make significant changes.
- Ongoing Investigation: The investigation into X continues, focusing on the spread of illegal content and the effectiveness of the platform’s efforts to combat disinformation.
- Content Moderation: The EU is also concerned about X’s reduction in content moderation resources and has requested detailed information and internal documents from the platform.
Tech magnate Elon Musk’s social media platform, X, has come under fire from the European Union for allegedly deceiving users with its blue checkmarks and violating EU content regulations. This could lead to substantial fines, Brussels announced on Friday.
Misleading Verification System
EU regulators have expressed dissatisfaction with the platform’s blue badge system since Musk’s acquisition.
Previously, the blue checkmark was a mark of verified status, reserved for prominent figures, companies, and journalists after thorough verification. Under Musk’s leadership, however, anyone can now obtain the badge through a premium subscription, a move the EU claims is misleading.
Digital Services Act Infringement
This formal warning to X is the first under the Digital Services Act (DSA), a comprehensive law mandating digital companies to enhance their online content policing. The warning follows an investigation initiated in December 2023.
X is now the third major company in recent weeks to face the EU’s strict new rules. Earlier, Apple and Meta were warned under the Digital Markets Act (DMA) to alter their practices or face significant fines.
Musk’s Overhaul of X
Since acquiring X in October 2022, Musk has implemented sweeping changes, including renaming the platform. However, his vision for X has clashed with the EU’s objective of better protecting users and fostering competition in the digital realm.
Also Read: ‘Pay or consent’: Meta faces billions in fine over new ad-free subscription model
The European Commission has preliminarily determined that X’s new blue badge policy “deceives” users, compromising their ability to discern the authenticity of accounts and content.
“There is evidence of motivated malicious actors abusing the ‘verified account’ to deceive users,” the commission stated.
Advertising and Data Transparency Issues
Additionally, the commission accused X of not adhering to advertising transparency rules and failing to provide researchers access to public data. X does “not provide a searchable and reliable” ad database, the commission noted.
Potential Consequences
Thierry Breton, the EU’s top digital official, warned, “X has now the right of defence — but if our view is confirmed, we will impose fines and require significant changes.” Under the DSA, fines can reach up to six percent of a company’s total worldwide annual turnover, alongside mandatory corrective actions.
Also Read: EU warns Apple against breaching digital competition rules amid Big Tech regulatory efforts
X will be allowed to review the EU’s findings and present its defence. The investigation has no set duration.
Ongoing Probes and Broader Implications
The EU’s extensive probe into X is also examining the spread of illegal content and the effectiveness of the platform’s disinformation countermeasures.
X is one of 25 “very large” online platforms, including Facebook and TikTok, with over 45 million monthly active users in the EU, subject to the DSA’s stringent requirements.
The EU is also scrutinising X for reducing its content moderation resources. In May, the EU demanded detailed information and internal documents from X, seeking clarity on measures to mitigate risks from generative AI on elections.
Other ongoing DSA investigations include probes into Meta’s Facebook and Instagram, TikTok, and AliExpress.
The DSA and DMA represent the EU’s strengthened regulatory framework targeting big tech, with regulators intensifying enforcement since the laws’ implementation.
