In a recent development, the European Union has issued a warning to X regarding its blue checkmark verification system, citing violations of the bloc’s Digital Services Act (DSA). The findings of the EU’s investigation into the platform reveal serious concerns about the transparency and deceptive practices employed by X, raising questions about compliance with established industry standards.
The EU has highlighted that X’s blue check system, which allows users to pay for verification, can be misleading for users as it hinders their ability to determine the authenticity of other accounts. Moreover, there are indications that malicious actors are exploiting the system to deceive users intentionally, compromising the overall integrity of the platform. These findings underscore the failure of X to meet transparency obligations under the DSA, as outlined by the EU competition chief, Margrethe Vestager.
If X does not address the EU’s grievances and make necessary changes to comply with the DSA, the company could face formal action and substantial fines of up to six percent of its global revenue. However, the exact financial implications for X remain uncertain, given its recent acquisition by Elon Musk for $44 billion. As a Very Large Online Platform (VLOP) with a significant user base in the EU, X’s non-compliance with the DSA could have far-reaching consequences for its operations and reputation.
The EU’s multifaceted investigation into X, initiated on December 18th, 2023, delves into various aspects of the platform’s practices, including deceptive practices, advertising transparency, and data access for researchers. Additionally, the investigation examines X’s handling of illegal content dissemination and moderation practices, particularly in light of recent geopolitical events such as the Israel-Hamas war. While some aspects of the investigation are ongoing, the preliminary findings raise significant concerns about X’s overall compliance with EU regulations.
The warning issued to X by the EU is part of a broader crackdown on big tech companies to ensure compliance with stringent regulations and standards. Separate DSA probes have been launched to assess Meta’s efforts in moderating political, deceptive, or illegal content on platforms like Facebook and Instagram, as well as safeguarding children who use these services. The increased enforcement actions by the EU signal a shift towards holding tech companies accountable for their practices and promoting transparency in the digital landscape.
The EU’s warning to X over violations of the Digital Services Act underscores the importance of transparency and accountability in the tech industry. As regulatory scrutiny intensifies, companies like X must address concerns raised by governing bodies and take proactive steps to comply with regulatory requirements. The outcome of this investigation will likely have significant implications for X’s future operations and its position as a major online platform in the EU market.
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