Elon Musk, CEO of SpaceX and Tesla and owner of X, speaks at the 2024 Milken Conference on May 6, 2024 in Beverly Hills, California.
David Swanson | Reuters
The European Commission on Friday accused MuskConduct X, which deceived users and violated digital content rules, put the social media giant at risk of hefty fines.
The Commission, the EU’s executive arm, opened an investigation last year to assess whether X breached the Digital Services Act (DSA) – a piece of legislation that requires big tech companies to better police content.
The agency’s preliminary opinion, released on Friday, was that X violated rules on dark graphics, ad transparency and access to researchers’ data. So-called dark patterns are deceptive tactics designed to push people into purchasing certain products and services.
The commission said X’s use of a blue checkmark for verified accounts was inconsistent with industry practice, as anyone can subscribe and achieve verified status. It added that there was evidence that “motivated malicious actors” were abusing verified status to deceive users.
The committee also accused X of erecting design features and barriers that hindered advertising transparency, and said it failed to allow researchers access to its public data as required by the DSA.
The EU antitrust chief said: “We believe that “Margaret Vestager said in a statement on Friday.
“At the heart of DSA is transparency and we are determined to ensure that all platforms, including X, comply with EU legislation.”
X did not immediately respond to CNBC’s request for comment.
in a Post on XMusk claimed that the committee offered his company an “illegal secret agreement” that would have allowed the company to avoid fines “if we censored speech quietly.”
“Other platforms accepted the deal,” Musk wrote, without providing evidence. “X doesn’t.”
If the Commission’s view is confirmed, X could face fines of up to 6% of its annual global revenue.
“X now has a right of defence, but if our view is proven we will impose fines and demand significant changes,” EU industry chief Thierry Breton said in a statement. Post on X.
The committee is also investigating TikTok, Alibaba’s AliExpress and Meta have similar concerns.
Meanwhile, the EU cracks down on tech giants, e.g. Google and Yuan. In 2022, the Commission launched Digital Services Acta key part of which focuses on how digital companies target users through advertising.
