The European Commission Fines Social Network X for Deceptive Practices
The European Commission (EC) has announced a significant decision following an extensive investigation into social network X, which began in 2024. The result of this inquiry has led to a hefty fine of €120 million (approximately $140 million), addressing the misleading nature of the platform’s blue checkmark feature.
Deceptive Design Practices Under Scrutiny
The crux of the issue lies in the blue checkmark, which is intended to indicate verified accounts. However, the EC found that this feature was deceptive since, contrary to implying a rigorous verification process, any user can purchase this status without meaningful validation by the company itself. This contravenes the obligations set forth in the EU’s Digital Services Act (DSA), which mandates online platforms to “prohibit deceptive design practices on their services.”
Advertisement Repository Violations
In addition to the fine regarding the blue checkmark, the EC also highlighted deficiencies in X’s advertisement repository. The body stated that the repository failed to meet the DSA’s transparency and accessibility requirements. Accessible and searchable ad repositories are essential, enabling researchers and civil society to identify scams, hybrid threat campaigns, coordinated disinformation efforts, and fraudulent advertisements.
X’s current design incorporates multiple barriers that hinder effective access to ad information, including unnecessary processing delays. Furthermore, the repository lacks critical details, such as the ad content and topics, alongside the legal entities financing the advertisements.
Restricted Access to Public Data
Another point of contention is X’s limitations on access to public data for researchers. The EC noted that the platform’s terms of service present significant hurdles for eligible researchers attempting to access publicly available data, including restricted scraping practices. These barriers obstruct vital research into systemic risks within the EU, effectively undermining efforts to ensure a safer digital environment.
Next Steps and Compliance Timeline
X has been given a deadline of 60 working days to inform the EC of specific measures it plans to implement to rectify the issues related to the deceptive blue checkmark. For the advertisement repository and data access concerns, the timeframe extends to 90 days. Following the submission of X’s action plan, the EC’s Board of Digital Services has one month to review it, after which the EC will set a reasonable implementation period for the necessary changes.
Source: Here
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