EU accuses X of violating DSA, may impose hefty fines
X has become the first very large online platform (VLOP), to receive a preliminary finding of violating EU's Digital Services Act (DSA). Penalties for confirmed violations under this regime can amount to up to 6% of the platform's global annual turnover. The European Commission initiated an investigation into X in December 2023, focusing on possible violations of DSA rules concerning risk management, dark patterns, content moderation, advertising, and data access for researchers. Preliminary conclusions have been reached on three grievances.
EU Commission details grievances against X
The first grievance identified by the Commission involves the design of the blue check on X. Under Elon Musk's ownership, this symbol no longer represents account verification but signifies a paid account or platform profile. The Commission argues this change could mislead users into believing that an account with a checkmark is verified or trustworthy. It also noted that X's algorithms prioritize replies from accounts with a checkmark in threads, potentially further misleading users.
X's ad repository and data accessibility criticized
The second grievance pertains to X's ad repository, which the Commission claims does not meet DSA requirements. The technical implementation of this requirement was criticized as subpar, with key information either missing or only partially and unreliably displayed. This hinders anyone wishing to investigate the advertisements being served on X's platform. The third grievance is related to X's failure to provide adequate data access for researchers, with the Commission criticizing a lengthy and non-transparent US screening process for EU-based researchers.
