The European Union maintains that X's blue checkmark verification system deceives users, violates industry standards, and violates the Digital Services Act. The EU says the ability to pay to be "verified" confuses users about which accounts are real and enables users with malicious intent to deceive others by abusing this system. The DSA's complex investigation, which began at the end of 2023 and is ongoing, is also looking into X's violation of transparency regulations, dissemination of illegal content, and moderation procedures.
EU competition chief Margrethe Vestager said, "In our opinion, X does not comply with the DSA in key areas of transparency, by using dark patterns that deceive users, by failing to provide an adequate repository for ads, and blocking access to data for researchers. Transparency is at the core of DSA, and we are determined to ensure that all platforms, including X, comply with EU law."
X was the first company to be accused of breaching the DSA and now has the opportunity to defend itself. If X fails to resolve the EU's concerns, the social media platform could face more action and fines of up to six percent of their global revenue. However, it is difficult to determine the exact number due to the company's private status.
This investigation comes as the EU is rolling out strict rules for big tech companies like X and Meta to make sure the companies run their platforms with the right safety and moderation standards.
