EC Probe Finds X Broke DSA Rules

The European Commission accused social network X of violating multiple rules under the Digital Services Act. The findings follow a seven-month-long investigation into the platform.

The EC outlined three main grievances in the way X operates as an online platform, as it singled out the app’s blue checkmark policy, non-transparent advertising, and practices that render its public data inaccessible to researchers. The authority explained X’s interface for blue checkmark or account verification does not correspond to industry practice since anyone can obtain such verified status.

The Commission stated that such practice results in deceiving users about the authenticity of accounts and content they interact with. “There is evidence of motivated malicious actors abusing the ‘verified account’ to deceive users,” the EC added. “Back in the day, blue checks used to mean trustworthy sources of information. Now with X, our preliminary view is that they deceive users and infringe the DSA,” commented Thierry Breton, commissioner for the internal market.

EC further argued X does not comply with the required transparency on online ads, pointing to the app’s design which does not allow for the required supervision and research into emerging risks brought about by the distribution of advertising online. X also attempted to“dissuade researchers from gathering public information about the company by prohibiting access to the data, instead directing them to an API and disproportionately high fees, the EC explained.

“In our view, X does not comply with the DSA in key transparency areas, by using dark patterns and thus misleading users, by failing to provide an adequate ad repository, and by blocking access to data for researchers,” said Margrethe Vestager EC Executive Vice President for competition policy. EC informed the company of its findings and gave it time to exercise its rights of defense. The probe could lead to a fine of up to 6% of X’s global turnover rate.