The European Union Criticizes X for Violating Digital Services Act

The European Union has recently issued a warning to X, a tech company, stating that its blue checkmark verification system is in violation of the bloc’s Digital Services Act (DSA). This comes after an investigation revealed that X’s practices were deemed deceptive and non-compliant with established industry standards.

One of the key findings of the EU investigation was that X failed to adhere to transparency obligations, especially regarding advertising and providing public data to researchers. The EU highlighted that X’s blue check system, which allows users to pay for verification, was misleading and prevented users from determining the authenticity of other accounts.

Furthermore, the EU pointed out that malicious actors were taking advantage of X’s verification system to intentionally deceive users. This abuse of the system raised concerns about the platform’s overall integrity and the safety of its users.

Potential Consequences for X

If X does not address the European Commission’s grievances and bring its practices in line with the DSA, the company could face formal action and fines of up to six percent of its global revenue. As a Very Large Online Platform (VLOP) with over 45 million monthly active users in the EU, X’s potential financial penalties could be significant.

The Commission initiated a multifaceted investigation into X on December 18th, 2023, focusing on various aspects such as deceptive practices, advertising transparency, and data access for researchers. The ongoing investigation also delved into X’s handling of illegal content and its moderation practices during sensitive events like the Israel-Hamas war.

Enforcement of Strict Rules

The EU’s crackdown on X is part of a broader effort to enforce stringent regulations on big tech companies. Apart from X, separate DSA probes have been launched to evaluate Meta’s (Facebook and Instagram) moderation of political, deceptive, and illegal content, as well as the protection of children using the platforms.

The European Union’s criticisms of X highlight the importance of transparency, accountability, and user safety in the digital realm. As regulatory bodies continue to monitor and enforce compliance with established standards, tech companies are urged to prioritize ethical practices and adhere to legal obligations to maintain trust and credibility among their user base.