The European Commission has threatened social network X with significant fines for failing to comply with transparency requirements, reports Financial Times The EU regulator said the company was in breach of the new Digital Services Act (DSA), which came into force this year and is designed to tighten controls over online content.
Image source: Souvik Banerjee/Unsplash
The European Commission said X violated the DSA by allowing users to buy a “blue checkmark” previously reserved for verified accounts. In preliminary findings from an investigation launched last year, the EU regulator said Elon Musk’s move to allow anyone to pay to become a verified user was misleading millions of users.
“Because anyone can opt in to receive this ‘verified’ status, it negatively impacts users’ ability to make unambiguous inferences about the authenticity of the accounts and content they receive,” the regulators said.
If the EU’s findings are confirmed, the social network faces a fine of up to 6% of the company’s total global turnover, meaning that according to the company’s published financial report in 2021, the fine will be calculated based on revenue of $5.1 billion.
The DSA is also reported to have developed a number of new provisions requiring major online platforms to regularly report on the removal of illegal and harmful posts and the ability to opt out of targeted advertising. Brussels also noted that X’s practices do not comply with the DSA in a number of ways, including the use of deceptive techniques to manipulate user behavior and a lack of transparency in advertising.
Thierry Breton, France’s internal market commissioner, said: “Blue ticks used to indicate reliable sources of information. Our preliminary view is that they are misleading and in breach of the DSA. We also believe that X’s advertising register does not comply with the DSA’s transparency requirements. X is entitled to protection, but if our view is confirmed, we will impose a fine and demand significant changes.” The company did not immediately respond to a request for comment.
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