Brussels, Belgium | By Michael Wandati | Brussels has issued a formal warning to Elon Musk’s X platform (formerly Twitter), alleging that its use of blue verification checkmarks for certified accounts is misleading and violates EU content regulations.
The European Union (EU) regulators expressed dissatisfaction with the platform’s ownership of the verification badge system, which now allows anyone to obtain it through a premium subscription.
Previously, these badges were reserved for verified accounts such as leaders, companies, and journalists, following a rigorous approval process.
This warning marks the first enforcement action under the Digital Services Act (DSA), a comprehensive law mandating stricter oversight of online content by digital companies.
The investigation, initiated in December 2023, underscores growing regulatory scrutiny over tech giants’ management of online platforms.
Elon Musk’s X platform has become the latest target of the European Union’s regulatory enforcement, marking the third company in recent weeks to face scrutiny under new landmark rules.
Following warnings to Apple and Meta for potential breaches of the Digital Markets Act (DMA), Brussels has now turned its attention to X.
Since Musk’s acquisition of the social media platform, formerly Twitter for $44bn in October 2022, significant changes have been implemented, including rebranding.
However, Brussels has raised concerns about X’s compliance with the Digital Services Act (DSA), accusing the platform of misleading users with its revised blue badge policies.
The European Commission’s preliminary findings suggest that X may be in violation of the DSA, reflecting broader EU efforts to compel major tech firms to enhance user protection and foster greater digital market competition.
“Since anyone can subscribe to obtain such a ‘verified’ status, it negatively affects users’ ability to make free and informed decisions about the authenticity of the accounts and the content they interact with,” the commission said in a statement.
“There is evidence of motivated malicious actors abusing the ‘verified account’ to deceive users,” it added.
The European Commission additionally criticized X for its non-compliance with advertising transparency regulations, citing its lack of a searchable and dependable ad database.
Furthermore, the commission highlighted X’s failure to grant researchers access to public data, raising concerns about transparency and accessibility within the platform’s operations.
“X has now the right of defence — but if our view is confirmed we will impose fines and require significant changes,” the EU’s top digital official, Thierry Breton, said.
Under the Digital Services Act (DSA), fines for violations can reach up to six percent of a company’s global annual turnover, accompanied by mandatory corrective actions.
X has the opportunity to review the EU’s report and present its defense against the recent allegations.
Investigations under the DSA are not constrained by specific timelines.
The EU regulators’ comprehensive investigation into X extends beyond verification issues, encompassing inquiries into the platform’s handling of illegal content and the efficacy of its strategies against disinformation, according to the commission’s statement.
EU targets tech giants under strengthened regulations
Under the Digital Services Act (DSA), X is classified among 25 “very large” online platforms in the EU, alongside giants like Facebook and TikTok, each boasting over 45 million monthly active users across the 27-country bloc.
X faces additional scrutiny from EU regulators regarding its content moderation capabilities. In May, the EU mandated X to provide extensive internal documentation and detailed information.
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The directive also sought clarification on the platform’s measures to mitigate risks associated with generative AI during elections.
Currently, ongoing investigations under the DSA encompass Meta’s Facebook and Instagram, as well as TikTok and AliExpress.
The DSA and the Digital Markets Act (DMA) represent the European Union’s reinforced legal framework aimed at regulating major tech companies.
EU regulators have intensified enforcement efforts since the laws came into effect, underscoring a proactive stance toward tech industry oversight.
