The European Union has recently issued a warning to X, a popular online platform, regarding its blue checkmark verification system. According to the EU, this system violates rules established under the bloc’s Digital Services Act (DSA). The investigation conducted by the EU revealed that X’s verification system is deceptive and goes against industry standards. In addition to this, X was found to be in non-compliance with transparency obligations related to advertising and providing public data to researchers.
One of the main concerns raised by the EU was the way X’s blue check system operates. The system allows any user to pay for verification, leading to difficulty in determining the authenticity of accounts. This lack of transparency has created opportunities for malicious actors to deceive users through the platform. EU competition chief, Margrethe Vestager, stated that X fails to comply with the DSA in terms of transparency, using dark patterns to mislead users, not providing an adequate ad repository, and restricting access to data for researchers.
If X does not address the three grievances raised by the European Commission, the company could face formal action and fines amounting to up to six percent of its global revenue. As a private company acquired by Elon Musk for $44 billion in October 2022, the financial impact of such penalties on X remains uncertain. X is classified as a Very Large Online Platform (VLOP) under the DSA due to its extensive reach in the EU, with over 45 million monthly active users.
The Commission initiated a comprehensive DSA investigation into X on December 18th, 2023, focusing on various aspects such as deceptive practices, advertising transparency, and data accessibility for researchers. The probe also included an evaluation of the platform’s handling of illegal content and its moderation practices, particularly in the context of the Israel-Hamas conflict. While some aspects of the investigation are ongoing, the EU’s warning to X underscores its commitment to enforcing strict regulations on major tech companies.
The action taken against X is part of a broader push by the European Union to enhance enforcement of regulations governing big tech companies. Separate probes under the DSA have been launched to assess Meta’s (formerly Facebook) efforts in moderating political, deceptive, or illegal content on its platforms, as well as ensuring the safety of children using these services. This crackdown on tech giants reflects the EU’s dedication to upholding regulatory standards in the digital sphere.
X’s violation of DSA regulations as highlighted by the European Union serves as a stark reminder of the importance of transparency, accountability, and adherence to industry standards in the online space. As regulatory scrutiny intensifies, tech companies must prioritize compliance with established guidelines to avoid facing penalties and ensure the protection of user interests.
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