Brussels says tech billionaire Elon Musk’s X platform is misleading users with blue checkmarks for certified accounts and is also violating EU content rules, a finding that could lead to a large fine.
EU regulators are unhappy with the changes Musk made to the green badge system because it can now be obtained by anyone through a premium subscription, whereas previously it was reserved for verified accounts including leaders, companies and journalists and required approval.
Musk has revamped the social media platform formerly known as Twitter, including changing its name, following its acquisition in October 2022.
But his X plan has put him at odds with Brussels, as the EU wants big tech companies to do more to protect online users and boost competition in the digital sector.
The European Commission has now notified X of its preliminary opinion that the company is “in breach” of the bloc’s Digital Services Act (DSA), citing the social network’s “misleading” users with its new green badge rules.
“Since anyone can apply to obtain such ‘verified’ status, this negatively impacts users’ ability to make free and informed decisions about the authenticity of accounts and the content they interact with,” the commission said in a statement.
“There is evidence that bad actors have an incentive to exploit ‘verified accounts’ to defraud users,” the report added.
X CEO Linda Yaccarino hit back at the accusation in a post on the platform, arguing that “a democratic system that allows everyone across Europe to access verified information is better than only verifying a privileged few.”
The Commission said the EU regulators’ broad investigation into X also continues to look into the spread of illegal content and the effectiveness of the platform’s efforts to combat disinformation.
Musk has criticized Brussels in posts on X, accusing Brussels of offering a deal to censor speech and vowing to take the matter to court.
“DSA IS misinformation!” Musk wrote in response to a senior EU official.
“The European Commission offered X an illegal secret deal: if we quietly censored speech without telling anyone, they wouldn’t fine us. Other platforms accepted that deal. X didn’t,” he claimed.
The EU’s top digital official, Thierry Breton, responded, also on X: “There has never been – and there will never be – any ‘secret deal’. With anyone.”
Breton added in a direct message to Musk: “It’s up to you to decide whether to make the commitment or not…. See you (in court or not).”
– Technology in sight –
The formal warning against X is the first under the DSA, a sweeping law that forces digital companies to do more to police online content. It follows an investigation launched in December 2023.
X becomes the third company in as many weeks to face the wrath of the European Union for breaching landmark new rules, after Brussels warned Apple and Meta to change their ways or risk huge fines for breaching a second law known as the Digital Markets Act (DMA).
The commission also accused X of failing to comply with advertising transparency rules — because the company “failed to provide a reliable and searchable advertising database” — and of not allowing researchers to access the public data.
“X now has the right to defend itself — but if our view is confirmed, we will impose fines and demand significant changes,” Breton said.
Fines under the DSA can be up to six percent of a company’s total annual worldwide turnover and require the company to make changes to address the violations.
X will be able to review the EU’s file and defend itself against Friday’s ruling.
There is no time limit for the investigation.
According to the DSA, X is subject to stricter regulations because it is one of 25 “very large” online platforms, including Facebook and TikTok, with more than 45 million monthly active users in 27 EU countries.
X has also come under scrutiny from the EU for cutting its content moderation resources. In May, the EU asked X to hand over “detailed internal information and documents” and requested more information on the steps it is taking to mitigate the risks posed by AI in elections.
DSA is currently conducting other investigations into Meta’s Facebook and Instagram as well as TikTok and AliExpress.
The DSAs and DMAs are both part of the EU’s beefed-up legal arsenal aimed at big tech companies, and EU regulators have stepped up enforcement.
