X (formerly Twitter) Faces EU Fines for Deceptive Blue Checks and Data Transparency Violations
The European Union (EU) has issued a stern warning to X, the social media platform formerly known as Twitter, over its controversial verification system, which allows users to buy blue checks for a monthly fee. The EU claims that this practice, coupled with X’s data transparency practices, violates the Digital Services Act (DSA), a landmark legislation aimed at regulating online platforms. The EU has threatened X with multi-million dollar fines unless the company makes significant changes to its policies.
The EU’s concerns stem from the perceived deception inherent in X’s verification system. Before Elon Musk’s acquisition of the platform in 2022, blue checks were reserved for verified accounts of influential figures, organizations, and journalists. This was seen as a valuable tool for users to identify trustworthy sources of information, helping to combat the spread of misinformation and scams.
However, Musk’s decision to open up verification to all users for a monthly fee of $8 fundamentally changed the meaning of the blue check. "Back in the day, blue checks used to mean trustworthy sources of information. Now with X, our preliminary view is that they deceive users and infringe the DSA," stated EU internal market commissioner Thierry Breton.
The EU argues that X’s verification system is now "negatively affecting users’ ability to make free and informed decisions about the authenticity of the accounts". This argument draws on the DSA’s focus on protecting user rights and ensuring a safe and trustworthy online environment.
The EU’s criticism extends beyond the verification system, focusing on X’s data transparency practices. The EU found that X does not comply with local rules on advertising transparency and restricts access to its public data for researchers. This includes exorbitant fees for access to X’s Application Programming Interface (API), which are essential for researchers to study the platform’s activity and trends.
"In our view, X doesn’t comply with the DSA in key transparency areas," stated EU competition chief Margrethe Vestager. The EU has accused X of potentially violating the DSA’s core principles of transparency and accountability, further deepening the platform’s regulatory woes.
X’s response to these accusations remains unclear. The company has yet to comment on the EU’s findings or outline plans for addressing the regulatory concerns. The EU has set no deadline for X to respond, but the company faces substantial fines if it fails to comply with the Commission’s demands for changes.
The EU’s scrutiny of X marks a significant escalation in its efforts to regulate big tech companies. The DSA, which came into effect in November 2022, empowers the EU to take decisive action against platforms that violate user rights or fall short of transparency standards. The EU’s preliminary findings against X mark the first time the DSA’s power to impose fines has been invoked against a major platform.
This action against X aligns with a broader trend of European regulators taking a stricter stance on Big Tech companies. Apple, Microsoft, and Meta have all faced accusations of breaching EU rules in recent months. Apple was ordered to allow rival payment systems on its devices, while Meta’s "pay-for-privacy" model was deemed illegal under EU rules.
The EU’s actions signal a shift towards stricter regulation of tech giants, demanding accountability and user protection. The DSA’s power to impose fines and penalties represents a powerful tool for ensuring that online platforms operate within legal bounds and respect user rights. While X’s future and its response to the EU’s findings remains uncertain, this case sets a precedent for holding online platforms accountable for their practices and potentially influencing future regulations across the globe.
Key Takeaways:
- The EU has issued preliminary findings accusing X of violating the Digital Services Act (DSA) through its verification system and data transparency practices.
- The EU claims X’s paid-for blue checks deceive users and negatively impact their ability to make informed decisions about the authenticity of accounts.
- The EU also criticizes X’s exorbitant fees for API access and its lack of compliance with local rules on advertising transparency.
- X faces potential fines of up to 6% of its global annual turnover if it fails to address the EU’s concerns.
- The EU’s action underscores its commitment to regulating big tech companies and ensuring safer, more transparent online environments.
Moving forward, it will be crucial to observe X’s response to the EU’s accusations and the potential changes they may implement to address the regulatory concerns. This case serves as a stark example of the growing power of regulatory bodies in shaping the future of online platforms and influencing their policies to better serve user interests.
