November 1, 2023: X owner Elon Musk addresses delegates on the first day of the UK AI Summit at Bletchley Park. Photo by Marcel Grabowski/UK Government. Wikimedia.
New findings published by the European Commission on Friday found that X has violated several transparency and accountability measures mandated by Europe’s Digital Services Act.
The Elon Musk-owned social media app (formerly known as Twitter) violated requirements on advertising transparency, dark patterns, and data access for researchers. If it does not take steps to address the violations, it could be fined up to 6% of its annual gross revenue. X is the first platform to be formally investigated under the DSA and the first to be found in violation.
The DSA, which came into full force in February for all designated large scale online platforms (VLOPs) and search engines (VLOSEs), is the European Union’s “rulebook” for making the internet safer, fairer and more transparent. Since then, the European Union has filed several formal lawsuits against VLOPs, including TikTok, AliExpress and Meta.
“Transparency is at the heart of the DSA and we are determined to ensure that all platforms, including X, comply with EU law,” Margrethe Vestager, executive vice president of Fit Europe for the Digital Age, said in a press release about the findings.
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The initial “formal infringement proceedings” launched in December concerned concerns about data access and advertising transparency, as well as the protection of minors and managing the risks of addictive design and harmful content. The Commission also suspected breaches of obligations to combat illegal content and disinformation.
The committee’s findings are preliminary but are based on internal company documents, interviews with experts and collaboration with national digital service coordinators. There are three main complaints:
The way X has designed and uses the so-called “blue tick” system for account verification is misleading to users, as anyone can obtain such status. This violates Article 25. X does not comply with the DSA’s advertising transparency requirements and the design of its advertising repository creates barriers that limit access and prevent research into emerging risks. This violates Article 39. Researchers’ access to X’s public data is substandard, prohibits independent access and the eligibility process actively prevents researchers from carrying out their projects. This violates Article 40(12).
X launched the “X Ad Repository” in the EU last year to comply with the DSA. The company boasted on its site that it offers access to information such as ad reach and the ability to opt out of ads on the platform. But in April, the Mozilla Foundation, a nonprofit organization working to create a more “human-centric Internet,” released an independent report that stress-tested the ad transparency tools offered by each DSA-designated platform and search engine. It found that while X does offer a publicly accessible ad repository, access to its ad data is “significantly slower” than other platforms, and much of the information is incomplete.
“Company X currently has a right of defence, but if our view is confirmed we will impose fines and demand significant changes,” said Thierry Breton, internal market commissioner, also in a press release.
Under the DSA rules, there are a series of procedures the Commission must now take, including giving companies a “reasonable period” to remedy non-compliance. The Commission can also impose fines and initiate enhanced supervision periods to enforce compliance. In the most extreme scenario, platforms could be temporarily suspended from operating in Europe.