European regulators have leveled accusations against Elon Musk’s social media platform X (formerly Twitter) for allegedly deceiving users with its paid blue checkmark system. The European Commission released a statement on Friday claiming that X has breached the Digital Services Act (DSA) in multiple areas, including the use of “dark patterns,” a lack of transparency in advertising, and restricted data access for researchers.
In our view @X doesn’t comply with the DSA in key transparency areas. It misleads users, fails to provide adequate ad repository and blocks access to data for researchers. It’s the first time we issue preliminary findings under the Digital Services Act.
— Margrethe Vestager (@vestager) July 12, 2024https://t.co/WtJ65GPwQY
The core of the issue lies in X’s blue checkmark verification system, which was overhauled under Musk’s ownership. Previously, the blue checkmark was a coveted symbol of authenticity, reserved for notable figures, organizations, and brands. However, under the new system, anyone can purchase a blue checkmark for a monthly fee, raising concerns about the badge’s legitimacy and potentially misleading users.
European regulators argue that this change “deceives users” by blurring the lines between verified accounts and those who have simply paid for the badge. This, they say, undermines users’ ability to discern genuine accounts from those seeking to spread misinformation or manipulate public opinion.
The accusations extend beyond the blue checkmark issue. The Commission also criticized X for failing to provide a transparent and searchable advertisement repository, which is required under the DSA. Additionally, the company’s policy of charging researchers for access to data has raised concerns about hindering independent scrutiny of the platform’s impact on society.
These allegations could lead to significant consequences for X. If the company fails to rectify the identified breaches within a specified timeframe, it could face hefty fines of up to 6% of its global annual turnover. This would be a major blow for the company, which is already facing financial challenges.
The case against X is a high-profile example of the EU’s increasingly assertive stance on regulating tech giants. The DSA, which came into effect in 2022, is designed to create a safer and more transparent online environment by holding platforms accountable for their content and practices.
X’s response to the allegations will be crucial in determining the outcome of this case. The company has defended its blue checkmark system as a way to democratize access to verification and generate revenue. However, it remains to be seen whether these arguments will satisfy European regulators and users who feel misled by the change.
