In a significant development regarding compliance with the European Union’s Digital Services Act (DSA), X has been found in breach of its transparency obligations as a very large online platform. The European Commission has flagged the platform’s blue checkmark design as “deceptive,” noting that it has been altered from a system intended for user verification to a paid feature.
The Commission has raised additional concerns, stating that X’s advertising library lacks crucial transparency, and that the platform is not providing the necessary public data access for researchers, as mandated by the DSA. This enforcement action highlights the stringent requirements placed upon platforms operating within the EU to ensure transparency and accountability.
This fine concludes only a segment of the ongoing investigation into X, which was initiated nearly two years ago and marks the first probe conducted under the DSA framework. There are still key aspects of the inquiry in progress, particularly regarding X’s initiatives to address the proliferation of illegal content and strategies to combat information manipulation.
Henna Virkkunen, the European Commission’s Executive Vice President for Tech Sovereignty, drew a distinction between the Commission’s handling of X and a separate decision regarding TikTok, which was also announced on the same day. The inquiry into TikTok’s ad library was closed without penalties because the company committed to modifying the design of its service to enhance compliance.
Virkkunen emphasized the Commission’s intent, stating, “We’re not here to impose the highest fines, we’re here to make sure that our digital legislation is enforced. If you comply with our rules, you don’t get a fine.”
Under the stipulations of the DSA, companies found in violation can face fines of up to 6 percent of their global annual revenue. While estimates place X’s global revenues in the low single-digit billions, Elon Musk’s array of companies reportedly has significantly higher earnings, positioning the potential financial repercussions prominently within the context of this regulatory landscape.
As the EU continues to enforce its digital regulations, the ongoing scrutiny of major technology companies highlights a broader commitment to holding platforms accountable for their operational practices and ensuring better protection for users in the digital space.
