Elon Musk’s X Could Face $200M EU Fines Over Alleged DSA Violations

Elon Musk’s social media platform, X.com, is under scrutiny by the EU for alleged violations of the Digital Services Act （DSA）. The company faces potential fines of up to $200 million.

Points

• X.com allegedly breached the DSA on three separate counts.
• Potential fines could reach up to 6% of X.com’s annual turnover.
• The platform faces regulatory challenges related to dark patterns, advertising transparency, and data access for researchers.

DSA Breaches

The European Commission’s preliminary findings indicate that X.com violated the Digital Services Act （DSA） in areas linked to dark patterns, advertising transparency, and data access for researchers. These allegations stem from an investigation that began in December 2023.

https://x.com/elonmusk/status/1811766597620474350

Potential Fines

The EU’s findings suggest that X.com could face fines up to 6% of its total worldwide annual turnover, amounting to approximately $200 million based on its 2023 earnings.

Complaints and Regulatory Challenges

The first complaint involves X.com’s “blue check” verification system, accused of deceiving users by allowing anyone to subscribe for a verified status. Additionally, X.com allegedly failed to meet transparency requirements for advertising and did not provide required data to researchers.

Musk’s Response

Elon Musk responded to the EU’s notice by questioning the credibility of the platform’s verification service. This adds another layer of complexity to the ongoing regulatory scrutiny.

Conclusion

X.com is currently navigating significant regulatory challenges in the EU. The company’s ability to comply with DSA requirements and address these allegations will be critical in determining its future operations in Europe.

解説

• DSA Violations: Understanding the Digital Services Act and its implications for large online platforms like X.com is crucial. The act aims to create a safer digital space by regulating online content and ensuring transparency.
• Potential Impact: The financial implications of the potential fines could be substantial, affecting X.com’s profitability and operations. The company’s approach to addressing these regulatory challenges will be closely watched by the industry.
• Market Confidence: Regulatory scrutiny can impact investor confidence. How X.com navigates these allegations and potential fines will play a significant role in maintaining its market position.