Elon Musk’s social media platform, X, is facing potential fines from the European Commission for deceptive practices related to the verification system. The EU has accused X of violating the Digital Services Act by misleading users with paid “verification” checkmarks that do not correspond to industry standards. The EU claims that this practice hinders users’ ability to make informed decisions about the authenticity of accounts and content they interact with, as malicious actors can abuse the system to deceive users.
In addition to the deceptive verification process, the EU alleges that X does not comply with transparency requirements for advertising and data access. The commission has criticized X for not providing a searchable and reliable advertising repository, as well as restricting access to public data for researchers. The design features and access barriers on X’s platform are said to make it difficult for users to supervise and research emerging risks related to online advertising.
X will have the opportunity to respond to the preliminary findings before the EU makes a final decision. If found to be in breach of the Digital Services Act, X could face fines of up to 6 percent of its total worldwide annual turnover. The EU may also impose measures to address the breach, such as enhanced supervision and periodic penalty payments to ensure compliance.
This is not the first time X has come under scrutiny for potential DSA violations. In December 2023, the EC launched a formal investigation into the platform’s practices. X has stated that it is committed to complying with EU legislation and is cooperating with the regulatory process. The company emphasizes the importance of a fair and law-abiding process free from political influence.
The EU’s announcement regarding the preliminary findings marks the first instance of a company facing potential DSA non-compliance charges. Margrethe Vestager, an EC competition official, emphasized the importance of transparency in the DSA and stated that all platforms, including X, must adhere to EU regulations.
As the investigation progresses, X will need to address the concerns raised by the EU to avoid significant financial penalties and regulatory measures. The outcome of this case will have implications for other social media platforms and their verification and transparency practices in the EU.
