EU Accuses Elon Musk's X of Misleading Users with Blue Checkmarks
Tech billionaire Elon Musk's social media platform, X, is under scrutiny for allegedly deceiving users with its blue checkmarks for certified accounts and violating EU content rules. Brussels announced findings that could result in substantial fines.
Controversial Changes to Blue Badge System
EU regulators expressed dissatisfaction with the changes Musk introduced to the blue badge system. Previously, the blue checkmarks were reserved for verified accounts, including leaders, companies, and journalists, and required approval. Now, anyone can obtain a blue checkmark through a premium subscription.
Musk, who purchased the platform formerly known as Twitter in October 2022, renamed it "X" and implemented significant changes. However, his plans for X have conflicted with Brussels' objectives, as the EU seeks increased protection for online users and enhanced competition in the digital sphere.
Violation of the Digital Services Act (DSA)
The European Commission recently informed X of its preliminary view that the platform is "in breach" of the EU's Digital Services Act (DSA). The commission contends that the new blue badge rules "deceive" users.
"Since anyone can subscribe to obtain such a 'verified' status, it negatively impacts users' ability to make free and informed decisions about the authenticity of accounts and content," the commission stated. They also cited evidence of malicious actors exploiting the 'verified account' status to mislead users.
Defense from X's Leadership
Linda Yaccarino, X's CEO, defended the changes, arguing that "a democratized system, allowing everyone across Europe to access verification, is better than just the privileged few being verified."
The EU's investigation into X also examines the spread of illegal content and the platform's efforts to combat disinformation. In response, Musk accused Brussels of offering a deal to censor speech and vowed to contest the matter in court. "The DSA IS misinformation!" Musk declared in a post on X, alleging the EU proposed an illegal secret deal to avoid fines if they censored speech quietly.
Thierry Breton, the EU's top digital official, retorted on X: "There has never been — and will never be — any 'secret deal'. With anyone." He added a direct message to Musk: "Up to you to decide whether to offer commitments or not.... See you (in court or not)."
First Formal Warning Under the DSA
The warning against X is the first issued under the DSA, a comprehensive law requiring digital companies to better police online content. The probe, initiated in December 2023, places X among the first to face consequences for violating the EU's stringent new regulations.
X is the third company in recent weeks to face EU scrutiny for breaching landmark rules, following warnings to Apple and Meta under the Digital Markets Act (DMA).
The commission also criticized X for non-compliance with advertising transparency rules, noting that the platform "does not provide a searchable and reliable" ad database and fails to grant researchers access to public data.
Potential Consequences
Breton stated, "X has now the right of defense -- but if our view is confirmed we will impose fines and require significant changes." Penalties under the DSA can reach up to six percent of a company's total worldwide annual turnover, compelling them to make necessary adjustments to rectify violations.
X will be able to review the EU's findings and defend itself against these allegations. The investigation has no set time limit.
As one of 25 "very large" online platforms, including Facebook and TikTok, X faces stricter regulations under the DSA, with over 45 million monthly active users in the 27-country EU.
Continued Scrutiny
X is also under EU scrutiny for reducing its content moderation resources. In May, the EU demanded X provide "detailed information and internal documents" and sought further information on measures taken to mitigate risks from generative AI in elections.
Other investigations under the DSA are ongoing into Meta's Facebook and Instagram, as well as TikTok and AliExpress. Both the DSA and DMA are part of the EU's strengthened legal framework targeting big tech, with regulators ramping up enforcement.
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