EU Accuses Elon Musk's X Platform of Deceptive Practices Under Digital Services Act
The European Commission has accused Elon Musk's X platform of deceiving users and violating the Digital Services Act with its new verification system. The EU regulator claims that X's use of the 'Blue checkmark' for verified accounts does not align with industry standards and misleads users about account authenticity. This system allows anyone to subscribe for verification, potentially enabling malicious actors to deceive users.
Commissioner for Internal Market Thierry Breton highlighted that the Blue checkmark once signified trustworthy information sources. The Commission has also criticized X for its lack of transparency in advertising, noting that the platform does not provide a reliable advertisement repository, making it difficult for users to understand the ads they encounter.
Additionally, the EU has found that X fails to adequately provide public data access to researchers, prohibiting them from scraping data and imposing high fees for API access. This hinders research into online risks associated with advertising distribution.
X now faces potential fines of up to 6% of its total worldwide annual turnover if these preliminary findings are upheld. The platform has been given the chance to respond in writing and may also face enhanced supervision and periodic penalty payments if it does not comply with the required measures.
This marks the first time a company has faced preliminary findings of non-compliance with the Digital Services Act, underscoring the EU's commitment to ensuring transparency and compliance among all platforms, including X.
Key Takeaways
- EU accuses X of deceiving users with paid verification system.
- X's Blue checkmark no longer signifies trustworthy information.
- Potential fines up to 6% of X's global annual turnover for DSA breach.
- X criticized for lack of transparency in advertising practices.
- X restricts data access to researchers, violating DSA provisions.
Analysis
The EU's accusation against X for deceptive practices undermines user trust and could lead to regulatory fines up to 6% of global turnover. This scrutiny highlights the EU's strict enforcement of the Digital Services Act, impacting X's reputation and financial stability. Short-term, X faces operational adjustments and potential revenue loss. Long-term, enhanced supervision could alter X's business model and competitive stance in the digital advertising market.
Did You Know?
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Digital Services Act (DSA): The Digital Services Act is a comprehensive set of regulations aimed at governing digital services within the European Union, focusing on user safety, transparency, and accountability of online platforms. It was designed to address the challenges posed by digital services, including the spread of illegal content and the manipulation of information.
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Blue Checkmark on X Platform: The Blue Checkmark on X (formerly known as Twitter) was historically a symbol indicating that an account of public interest is authentic and verified by the platform. However, under the new system implemented by Elon Musk, the Blue Checkmark can be purchased by any user through a subscription service, thereby diluting its original significance and potentially misleading users about the authenticity of the account.
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API Access and Data Scraping Restrictions: API (Application Programming Interface) access refers to the methods and tools that allow external developers and researchers to interact with a platform's data. Data scraping involves the extraction of data from a website using software. Restricting these can limit the ability of researchers to analyze platform data, which is crucial for understanding and mitigating online risks such as misinformation and targeted advertising practices.