Sat. Nov 2nd, 2024

Large EU fines are awaiting Elon Musk’s X after paid checkmarks were found to be misleading.

 

 

Elon Musk’s social media platform, X (formerly known as Twitter), is facing significant legal challenges from the European Union due to alleged violations of the Digital Services Act (DSA). The European Commission has initiated formal infringement proceedings, marking the first time a company has been investigated under these new, comprehensive regulations aimed at creating a safer online environment​ .

The investigation centers on four main areas of potential infringement:

  1. Dissemination of Illegal Content: The EU is scrutinizing X’s effectiveness in identifying and swiftly removing illegal content, particularly content related to terrorism and violent acts, which became a focal point following the Israel-Hamas conflict.
  2. Combatting Disinformation: The platform’s measures to prevent information manipulation, such as its Community Notes feature intended to debunk misleading posts, are under examination for their adequacy and effectiveness.
  3. Transparency: There are concerns about whether X has provided sufficient access to its data for researchers, particularly regarding paid advertisements and publicly accessible data.
  4. Deceptive Design: The design of X’s user interface, including the paid blue checkmark system which signifies users as “active, notable, and authentic,” is being investigated for potentially misleading users​ .

Elon Musk’s social media platform, X (formerly known as Twitter), is facing significant fines from the European Union (EU) due to alleged violations of the Digital Services Act (DSA). The EU’s concerns center around four primary areas: risk management, content moderation, deceptive practices, and transparency in advertising and data access for researchers.

The DSA, which came into force in August 2023, imposes strict requirements on very large online platforms (VLOPs) to ensure safer online environments. X, with over 45 million users in the EU, must comply with these regulations. The EU’s legal action is partly a response to X’s handling of illegal content and disinformation, particularly related to recent conflicts such as the Israel-Hamas war. The platform was found to be disseminating harmful content, which was not adequately moderated​ (​.

A major point of contention is the change in the platform’s verification system. Originally, blue checkmarks were used to verify notable figures’ identities. However, under Musk’s leadership, these checkmarks have become a paid feature, leading to concerns about misleading users into believing that paid accounts are more trustworthy​ .

The EU’s investigation could result in fines up to 6% of X’s global turnover, potentially amounting to around $264 million. This case marks the first formal proceedings under the DSA, reflecting the EU’s commitment to enforcing these new regulations and holding large online platforms accountable​​.

In response, X has expressed its commitment to complying with the DSA and is cooperating with the regulatory process. The platform’s compliance will be scrutinized through interviews, inspections, and access to its algorithmic databases. This investigation underscores the EU’s determination to ensure online platforms operate responsibly and transparently​​.

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