Twitter Successor - According to an EU investigation: Elon Musk's X faces high fines
According to a preliminary assessment by the EU Commission, US entrepreneur Elon Musk and his online platform X are in violation of EU law with Musk's X (previously Twitter). The company may face a hefty fine, as the Brussels authority has announced. The design of the X platform, according to the Commission, can mislead users, specifically regarding the verification of user accounts. The EU Commission has accused X of allowing any subscribers to obtain a "verified" account, which could mislead other platform users.
For the first time, the EU Commission has made preliminary investigation results public under the new EU Digital Services Act (DSA). X can now respond to the allegations. The Commission emphasizes that today's presented results are not final.
Checkmarks for Subscribers
White-blue checkmarks were previously used by Twitter to verify accounts for prominent individuals, politicians, and public figures following a company review. This practice is common among other online services. However, Musk introduced a change where all subscribers received checkmarks that looked like the old ones. This led to confusion and numerous complaints, especially immediately after the transition, as false accounts of companies and prominent figures suddenly appeared authentic.
The Commission now reports that malicious actors have been using these allegedly verified accounts on X to deceive other users.
Online Platforms must comply with stricter rules due to the DSA. This includes increased transparency in advertising and granting researchers access to specific data. Both points are, according to the EU Commission's preliminary view, violated by X. Investigations against other large online platforms based on the DSA are also ongoing.
High Fine Threatened
If the Commission's preliminary assessment is confirmed, the EU Commission could impose a fine of up to six percent of the company's worldwide annual revenue. The decision could be challenged in court. The current revenue of X is only estimated.
Since Musk bought the predecessor service Twitter in October 2022 and went public, no numbers have had to be disclosed. Only fragmented information about the deal has come to light. For example, Bloomberg recently reported that revenues fell by 40% in the first half of 2023 compared to the previous year, reaching 1.48 billion dollars.
X has been under criticism for not taking decisive action against false information and hate speech on the platform for a long time. The DSA obliges companies to strictly enforce illegal content, such as hate speech and incitement to violence on the internet. Elon Musk had consistently emphasized his intention to remove what he saw as excessive restrictions on free speech on the platform.
Additional Investigations
X was sent a questionnaire by the EU Commission after there were numerous indications of illegal and misleading contributions to the attack by the Islamist Hamas on Israel on the platform. The answers to these questions apparently did not satisfy the EU Commission, leading to an investigation against X. This proceeding is running independently of the currently presented preliminary results.
- The European Union (Europe) is considering imposing a fine on Elon Musk's X (previously Twitter), registered in the United States of America, due to alleged violations of EU law.
- The European Commission in Brussels believes that the design of the X platform can mislead users, particularly regarding the verification of user accounts.
- The European Commission has accused X of allowing any subscribers to obtain a "verified" account, a practice that could mislead other platform users.
- Under the new EU Digital Services Act (DSA), online platforms like X must comply with stricter rules, including increased transparency in advertising and granting researchers access to specific data.
- The EU Commission has reported that malicious actors have been using allegedly verified accounts on X to deceive other users.
- If the preliminary assessment against X is confirmed, the European Commission could impose a fine of up to six percent of the company's worldwide annual revenue.
