EU Flags Elon Musk’s X.com for Potential Digital Services Act Violations
Understanding the Allegations
On July 12, the European Commission disclosed that it had informed X.com of its initial findings, which suggest non-compliance with several aspects of the DSA. The concerns focus on issues such as dark patterns in user interface design, transparency in advertising practices, and the accessibility of data for research purposes.
The investigation, which commenced in December 2023, scrutinizes X.com’s moderation strategies, its deployment of generative artificial intelligence technologies, and its adherence to mandatory data-sharing protocols with researchers. Furthermore, the platform’s advertising transparency has been called into question.
EU Internal Market Commissioner Thierry Breton highlighted on X.com that while these findings are provisional, they serve as an official notice to Musk and his company, granting them the opportunity to respond and defend their practices.
Controversy Over Verification Badges
Central to the EU’s critique is X.com’s “blue check” verification system. The European Commission argues that the platform’s approach to verification could mislead users by allowing anyone to purchase a verified status. This, according to the EU, undermines the ability of users to make informed decisions regarding the authenticity of accounts and the content shared.
This system’s design has reportedly been exploited by malicious actors, further complicating the issue and potentially deceiving users on the platform.
Advertising and Data Access Issues
Another significant area of concern is X.com’s handling of advertising transparency. The EU mandates that very large online platforms (VLOPs) like X.com must clearly disclose how they deliver advertisements to users. According to the EU’s preliminary findings, X.com has not adequately met these transparency requirements.
Additionally, the platform has failed to comply with directives that require providing researchers access to public data via the X API, a critical component of the DSA aimed at fostering a safer and more transparent online environment.
Potential Consequences for X.com
The implications of these findings are profound, not only for X.com but for the broader tech industry, as they underscore the increasing focus of regulatory bodies on ensuring that digital platforms operate transparently and ethically.
For more insights into the evolving landscape of web3 and digital platform regulation, explore our articles on the future of work in the web3 era and navigating web3 recruitment amidst crypto calamities.
As the situation develops, X.com has the opportunity to respond to these allegations and potentially adjust its practices to align with the EU’s regulatory standards, thereby mitigating the risk of severe penalties and ensuring a more trustworthy platform for its users.
