On 12 July 2024, the Commission has informed X of its initial assessment that it is in breach of the Digital Services Act (DSA) in several key areas, including dark patterns, advertising transparency, and data access for researchers.
Transparency and accountability in content moderation and advertising are central to the DSA. Following a thorough investigation involving analysis of internal documents, expert interviews, and collaboration with national Digital Services Coordinators, the Commission has identified three main areas of non-compliance:
- Deceptive Verified Accounts: X’s interface for “verified accounts” with the “Blue checkmark” misleads users. The subscription-based verification system undermines users’ ability to discern the authenticity of accounts, with evidence showing malicious actors exploiting this feature.
- Lack of Advertising Transparency: X fails to provide a reliable advertisement repository, implementing design features and access barriers that hinder transparency and research into online advertising risks.
- Restricted Data Access for Researchers: X does not grant researchers appropriate access to public data, contrary to DSA requirements. Instead, X imposes restrictive terms of service and high fees, deterring independent research.
By issuing these preliminary findings, the Commission informs X of its view of non-compliance while allowing X to defend itself by reviewing the investigation documents and responding in writing. The European Board for Digital Services will also be consulted.
If these preliminary views are confirmed, the Commission could adopt a non-compliance decision, potentially imposing fines up to 6% of X’s global annual turnover and ordering remedial measures. Enhanced supervision and periodic penalty payments could also be imposed to ensure compliance.
Background
X, previously known as Twitter, was designated as a Very Large Online Platform (VLOP) on April 25, 2023, under the DSA, having over 45 million monthly active users in the EU.
The Commission initiated formal proceedings on December 18, 2023, to investigate potential DSA breaches related to illegal content dissemination and information manipulation, along with the current focus areas of dark patterns, advertising transparency, and data access for researchers.
Additionally, the Commission has launched formal proceedings against TikTok, AliExpress, and Meta in 2024, and established a whistleblower tool for anonymous compliance reporting by VLOP employees and others.
More information, Commission sends preliminary findings to X for breach of the Digital Services Act.
Source: European Commission
