According to the European Commission, preliminary results of its investigation into the platform have revealed violations of the Digital Services Act.
The EU’s technological regulation authorities have issued a preliminary notice that could result in fines and significant changes in the way the platform owned by billionaire Musk operates.
The EU regulation, also known as the DSA, is a comprehensive set of rules that require platforms to take greater responsibility in protecting users and managing their sites.
Currently, the Commission is also investigating other tech and online communication giants such as TikTok, AliExpress, and Meta Platforms.
Just yesterday, on July 11th, Apple announced that it had reached an agreement to meet requirements that had so far been violated under the EU law.
The platform X violates EU regulations.
What risks does Musk’s platform face?
A preliminary EU investigation concluded that X is deceptive.
The use of the blue checkmark for “verified accounts” by the platform does not align with industry practices, as anyone can sign up and get a verified status, the commission stated.
There was evidence of “motivated bad actors” abusing the verified status to deceive users.
In addition, X failed to meet the DSA requirement that companies provide a reliable and accessible archive of advertisements, the Commission stated.
The platform was also accused of preventing researchers from accessing its public data.
The company will have several months to respond to the allegations and could face a fine of up to 6% of its global turnover if found guilty of violating the DSA.
“X now has the right to defend itself, but if our opinion is confirmed, we will impose fines and require significant changes,” said Thierry Breton, the EU’s industry chief.
After Musk purchased the site in 2022, he started issuing verification badges to anyone who paid $8 per month.
Prior to the acquisition, the requirements were upheld, and the verified account badge was largely reserved for celebrities, politicians, and other influential accounts.
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