Nandini Roy Choudhury, writer
Brief news
- The European Commission has charged Elon Musk’s X with violating digital content regulations and misleading users, potentially resulting in a substantial fine.
- The commission’s preliminary assessment found that X violated regulations regarding data access for researchers, advertising transparency, and the use of deceptive strategies known as “dark patterns.”
- X may face a sanction of up to 6% of its global annual revenue if the commission’s conclusions are upheld.
Detailed news
On Friday, the European Commission charged Elon Musk’s X of violating digital content regulations and misleading users, potentially subjecting the social media colossus to a substantial fine.
Last year, the European Union’s executive arm, the commission, initiated an investigation to determine whether X is in violation of the Digital Services Act (DSA), a piece of landscape legislation that mandates that Big Tech companies enhance their oversight of the content on their platforms.
The body’s preliminary assessment, which was released on Friday, is that X has violated regulations concerning data access for researchers, advertising transparency, and shadowy patterns. These deceptive strategies, known as “dark patterns,” are intended to encourage individuals to purchase specific products and services.
The commission stated that the blue checkmark used by X to indicate validated accounts is not in accordance with industry standards, as anyone can subscribe and achieve verified status. It further stated that there was evidence of “motivated malicious actors” exploiting the verified status to deceive users.
The commission also alleged X of implementing design parameters and restrictions that impede advertising transparency, and claimed that it does not permit researchers to use its public data, as mandated by the DSA.
The European Union’s antitrust chief, Margrethe Vestager, stated in a statement on Friday that X does not comply with the DSA in key transparency areas. This is due to the use of dark patterns, which mislead users, the absence of an adequate ad repository, and the restriction of data access for researchers.
“Transparency is the foundation of the DSA, and we are committed to guaranteeing that all platforms, including X, adhere to EU legislation.”
X may be subject to a sanction of up to 6% of its global annual revenue if the commission’s conclusions are upheld.
EU industry chief Thierry Breton stated in a post on X that “X has now the right of defense—but if our view is confirmed we will impose fines and require significant changes.”
TikTok, Alibaba’s AliExpress, and Meta are also under investigation by the commission due to comparable concerns.
It coincides with the EU’s stringent regulations of technology titans such as Meta and Google. A significant component of the Digital Services Act, which was introduced by the commission in 2022, pertains to the manner in which digital businesses reach consumers with advertisements.
