Elon Musk’s social media platform X has been hit with a warning from the EU for deceiving users into engaging with potentially harmful content, in the latest show of force by Brussels against Big Tech’s practices.
The bloc’s regulators are worried that X’s use of blue checkmarks for verified accounts “deceives” users into believing such accounts are safe when “there is evidence of motivated malicious actors abusing” the checkmark system, regulators said in provisional findings issued Friday.
The move from the EU under its Digital Services Act could eventually pave the way for fines of up to 6% of X’s revenue, if the company fails to appease the EU’s concerns. There is no specific timeframe for the next steps in the probe.
X’s lack of transparency on advertising also potentially breaches the DSA, the European Commission said, as does the platform’s failure to open up its data to researchers.
“X has now the right of defence — but if our view is confirmed, we will impose fines and require significant changes,” EU internal market commissioner Thierry Breton said on Friday. Before a financial penalty is ever imposed, EU regulators will have to adopt a final decision in the case.
The warning shot against X follows the opening of an investigation under the DSA by the EU’s regulators in December. Brussels watchdogs have made inquiries into the platform’s handling of content after Hamas’s attacks on Israel last year. Regulators also have opened investigations into Meta Platforms, AliExpress and ByteDance’s TikTok.
The DSA became legally enforceable last August, laying out content rules for social media platforms, online marketplaces and app stores. The rules force their owners to clamp down on misinformation and objectionable content such as hate speech and terrorist propaganda. — Samuel Stolton, (c) 2024 Bloomberg LP