X (Formerly Twitter) Faces €120 Million Fine Under EU’s digital Services Act
The social media landscape shifted dramatically today as the European commission (EC) levied a considerable €120 million (approximately $140 million) fine against X,formerly known as Twitter. This landmark decision, stemming from an investigation launched in 2024, underscores the growing scrutiny of online platforms and their adherence to the EU’s Digital services Act (DSA). The core of the issue? Deceptive practices surrounding X’s paid verification system and notable shortcomings in openness regarding its advertising and data access policies. This isn’t just about a fine; it’s a pivotal moment in regulating digital services and protecting users online.
But what does this mean for you, as a user of social media, an advertiser, or a researcher? And what steps is X required to take to rectify these violations? Let’s delve into the details.
Understanding the DSA and its Implications
The Digital Services Act, which came into full force in February 2024, aims to create a safer and more accountable online habitat within the European Union. It places significant obligations on very large online platforms (VLOPs) – those with over 45 million active users in the EU, like X – to address illegal content, protect fundamental rights, and ensure transparency. The DSA specifically prohibits “dark patterns” and deceptive design practices intended to manipulate user choices.
The Three Key Violations: A Deep Dive
The EC’s investigation pinpointed three primary areas where X fell short of DSA compliance:
1. Misleading verification: The Blue Checkmark Controversy
The most prominent violation centers around X’s paid verification system, X Premium (formerly Twitter Blue). The EC found that the blue checkmark, traditionally a symbol of verified identity, is now available to anyone willing to pay a subscription fee – irrespective of weather their identity has been meaningfully verified. This creates a deceptive impression, leading users to believe that accounts with blue checkmarks are authentic and trustworthy when that may not be the case. This directly violates the DSA’s prohibition of deceptive practices. Recent data from Bot sentinel (December 2023) indicated a 300% increase in bot accounts with verified checkmarks after the introduction of X Premium, highlighting the potential for misuse.
2. Opaque Advertising Repository: A Lack of Transparency
The DSA mandates that online platforms maintain publicly accessible and searchable advertising repositories. These repositories are crucial for researchers, fact-checkers, and civil society organizations to monitor political advertising, identify disinformation campaigns, and understand how ads are targeted. the EC found that X’s advertising repository was severely lacking. It suffered from “design features and access barriers, such as excessive delays in processing,” and failed to provide essential information like the content, topic, and legal entity behind each advertisement. This lack of ad transparency hinders efforts to combat online manipulation and protect users from scams.
3. Restricted Data Access for Researchers: Impeding Systemic Risk Analysis
Another critical aspect of the DSA is the requirement for VLOPs to provide researchers with access to public data, enabling them to study systemic risks associated with online platforms – such as the spread of disinformation, hate speech, and harmful content. X’s terms of service explicitly prohibit self-reliant researchers from scraping public data, and the platform’s access processes for researchers are overly burdensome. This restriction effectively prevents independent analysis of X’s impact on the EU’s digital ecosystem. A study by the European Digital Media Observatory (EDMO) in November 2023 highlighted the growing challenges researchers face in accessing data from major social media platforms, hindering their ability to understand and mitigate online harms.
What Happens Next? X’s Path to Compliance
X now faces a strict timeline to address these violations. The company has:
* 60 working days to inform the EC of specific measures it will take to end the infringement related to the blue checkmark.
* 90 days to address the shortcomings in its advertising repository and improve access to public data for researchers.
The EC’s Digital Services Board will then review X’s proposed action plan and provide an opinion within one month. the EC will issue a final decision and set a reasonable implementation period for X to fully comply with the DSA.
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