The EU has warned Elon Musk’s company X that it could face a substantial fine for violating social media regulations with its blue checkmark system. Regulators found that X had been deceptive and in breach of the Digital Services Act, which could result in fines of up to 6% of its global turnover.
The European Commission stated that X had misled users by displaying blue checkmarks on untrusted accounts, restricted researchers from accessing public data, and operated an insufficient ad library that prevented scrutiny of ads on the platform. If confirmed, X would need to make significant changes to comply with the DSA.
Thierry Breton, the EU Commissioner for the Internal Market, expressed concerns about X’s misleading use of blue ticks and emphasized the need for compliance with the DSA. X has the opportunity to challenge the findings, but fines may be imposed if the violations are confirmed.
The Commission is also investigating whether X failed to address illegal content and misinformation, marking the first preliminary findings against a company under the DSA. Tesla, under Musk’s ownership, has seen a decline in advertising revenue, with expectations for sales to reach $3 billion in 2023.
X implemented a paid blue tick feature as part of its premium subscription service, but the EU believes this feature is being abused by malicious actors. Musk’s previous attempts to revamp the service led to an increase in fake accounts impersonating various entities.
An outreach to X for comment has been made.
Source: www.theguardian.com
