The European Commission has issued a preliminary view that X, formerly known as Twitter, is in breach of the Digital Services Act (DSA) in areas related to dark patterns, advertising transparency, and data access for researchers. This finding follows an in-depth investigation involving the analysis of internal company documents, expert interviews, and cooperation with national Digital Services Coordinators.
A primary concern is the platform’s management of “verified accounts” with the Blue checkmark. The Commission found that the design and operation of this feature do not align with industry standards, leading to user deception. By allowing anyone to subscribe for a “verified” status, the platform undermines users’ ability to discern the authenticity of accounts and the content they interact with. This approach has been exploited by malicious actors to deceive users, thereby compromising the integrity of the platform.
Another significant issue identified is X’s lack of advertising transparency. The DSA mandates that platforms provide a searchable and reliable advertisement repository to ensure transparency. However, X has implemented design features and access barriers that make its ad repository ineffective for this purpose. This failure hinders the necessary supervision and research into the emerging risks associated with online advertising, preventing proper oversight.
The investigation also highlighted that X restricts data access for researchers in violation of the DSA. Although the DSA requires platforms to provide eligible researchers with access to public data, X’s terms of service prohibit such independent data access through methods like scraping. Additionally, the process for granting API access to researchers is so cumbersome and costly that it effectively dissuades them from pursuing their projects. Researchers are often left with no viable option but to pay disproportionately high fees, if they can gain access at all.
These findings indicate that X’s practices not only fail to meet the DSA’s requirements but also impede the overall goal of transparency and accountability in digital services. The Commission’s preliminary findings serve as a critical step in enforcing these standards, with the potential for significant penalties and mandatory corrective actions if X fails to comply.
Should the Commission’s preliminary views be confirmed, it would adopt a non-compliance decision against X, finding it in breach of Articles 25, 39, and 40(12) of the DSA. This could result in substantial fines of up to 6% of X’s total worldwide annual turnover. Additionally, the Commission could order X to take corrective measures and impose an enhanced supervision period to ensure compliance. Periodic penalty payments may also be imposed to compel X to adhere to the required measures.
X was designated as a Very Large Online Platform (VLOP) under the DSA on April 25, 2023, after declaring over 45 million monthly active users in the EU. The formal proceedings against X began on December 18, 2023, to assess potential breaches of the DSA related to the dissemination of illegal content, effectiveness of measures against information manipulation, and the specific issues of dark patterns, advertising transparency, and data access for researchers addressed in the current findings.
In addition to X, the Commission has opened formal proceedings against other major platforms, including TikTok, AliExpress, and Meta, for similar breaches of the DSA. The Commission has also implemented a whistleblower tool allowing individuals to report compliance issues anonymously, contributing to the monitoring of VLOPs and Very Large Online Search Engines (VLOSEs).
Margrethe Vestager, Executive Vice-President for a Europe Fit for the Digital Age, commented: “Today we issue for the first time preliminary findings under the Digital Services Act. 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. The DSA has transparency at its very core, and we are determined to ensure that all platforms, including X, comply with EU legislation.”
Thierry Breton, Commissioner for Internal Market, added: “Back in the day, BlueChecks used to mean trustworthy sources of information. Now with X, our preliminary view is that they deceive users and infringe the DSA. We also consider that X’s ads repository and conditions for data access by researchers are not in line with the DSA transparency requirements. X has now the right of defence — but if our view is confirmed, we will impose fines and require significant changes.”
While X hasn’t released an official response, owner Elon Musk posted on the platform, “The European Commission offered 𝕏 an illegal secret deal: if we quietly censored speech without telling anyone, they would not fine us. The other platforms accepted that deal. 𝕏 did not.”
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Since the inception of the DSA, major tech companies have been actively striving for compliance. If you’re uncertain about your company’s compliance under the DSA or other AI regulations, consider reaching out to BABL AI. Their Audit Experts possess specific expertise in handling DSA compliance and can assist you with any questions or concerns.
Photo by Chinaimages on depositphotos.com – Elon Musk, CEO of Tesla Motors Inc., speaks during a delivery ceremony for Tesla Model S sedan in Beijing, China, 22 April 2014
