Threat of fine

Musk’s X violates EU law according to the Commission

According to a preliminary assessment by the EU Commission, Elon Musk's short messaging service X is in breach of EU law. According to the authority, the design of the platform could mislead users. As a result, the service is facing a high fine.

Specifically, the Commission accuses X (formerly Twitter) that the way in which user accounts are verified could lead to other users of the platform being misled because anyone could obtain a "verified" account.

This is the first time that the EU Commission has published preliminary investigation results under a new EU law on digital services (DSA). X can now respond to the allegations. The Commission emphasizes that the results presented on Friday are not yet final.

Who pays is verified
On Twitter, the white and blue tick symbols for verification used to be awarded to celebrities, politicians and public figures following a review by the company. This is also common practice for other online services. Musk, on the other hand, introduced checkmarks for all subscription customers that look like they used to. Immediately after the changeover in particular, there was a lot of trouble because fake accounts of companies and celebrities suddenly looked real.

The Commission has now announced that there are indications that malicious actors are misusing such supposedly verified accounts on X to deceive other users.

Stricter rules for large platforms
Online platforms have had to adhere to much stricter rules for some time due to the DSA. These include greater transparency in the area of advertising and granting researchers access to certain data. According to the EU Commission's preliminary view, X is in breach of the DSA on both points. Other large online platforms are also being investigated on the basis of the DSA.

If the Commission's preliminary opinion is confirmed, the EU Commission may impose a fine of up to six percent of the company's global annual turnover. Legal action could be taken against the decision.

Turnover uncertain
Only estimates of X's current turnover are known. Since Musk bought the predecessor service Twitter in October 2022 and took it off the stock exchange, no more figures have to be presented. Details of the business have only come to light in fragments. The financial service Bloomberg recently wrote that revenue fell by 40 percent year-on-year to 1.48 billion dollars in the first half of 2023.

X has also long been criticized for not taking decisive enough action against misinformation and hate speech on the platform. The DSA also obliges companies to take strict action against illegal content such as hate speech and incitement to hatred online. Elon Musk has always emphasized that he wants to remove what he considers to be excessive restrictions on freedom of expression on the platform.

Further proceedings pending
X has already been sent a list of questions by the EU Commission after there were numerous references to illegal and misleading posts on the platform about the Islamist Hamas attack on Israel. As the questions were apparently not answered to the satisfaction of the EU Commission, proceedings were opened against X. This continues regardless of the preliminary results that have now been presented.