The European Commission has threatened social network X with significant fines for failing to comply with transparency requirements, reports the Financial Times. The EU regulator said the company was breaching provisions of the new Digital Services Act (DSA), which came into force this year and is intended to tighten controls over online content.
Image Source: Souvik Banerjee/Unsplash
The European Commission said X violated the DSA by allowing users to purchase a “blue tick” that was previously only given to verified accounts. In the preliminary findings of an investigation launched last year, the EU regulator said Elon Musk’s decision, which allows anyone to pay to become a verified user, was misleading millions of users.
«
If the EU’s findings are confirmed, the social network faces a fine of up to 6% of the company’s total global turnover, that is, in accordance with the company’s published financial report in 2021, the fine will be calculated on an income of $5.1 billion.
The DSA is also said to have developed a number of new provisions requiring large online platforms to regularly submit reports 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, as well as lack of transparency in advertising.
Thierry Breton, French Commissioner for the Internal Market, said: “Blue ticks used to mean reliable sources of information. Our preliminary view now is that they are misleading users and in violation of the DSA. We also believe that Ad Registry X does not meet the DSA’s transparency requirements. X has the right to a defense, but if our opinion is confirmed, we will impose a fine and demand significant changes.” The company did not immediately respond to a request for comment.