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Elon Musk’s X to Face Fine of Up to 6% of Global Turnover

A statement released by the European Commission indicated that preliminary findings suggested that X's practices do not align with industry standards, and if confirmed, could result in a fine of up to 6% of X's global annual turnover

The European Commission has issued a formal charge against Elon Musk’s X, alleging violations of the Digital Services Act (DSA).

The regulators claim that X’s verification process is misleading and deceives users, as anyone can subscribe to obtain a verified status, which has led to malicious actors exploiting the system.

The probe was triggered earlier last year by concerns over Hamas-affiliated accounts on the platform following the October 7, 2023, attacks against Israel.

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The Commission’s findings have raised questions about X’s compliance with EU regulations and its ability to ensure user safety and security.

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A statement released on July 12, 2024, by the European Commission, indicated that the Commission’s preliminary findings suggested that X’s practices do not align with industry standards, and if confirmed, could result in a fine of up to 6% of X’s global annual turnover.

“In our view, X does not comply with the Digital Service Act (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,” an excerpt of the statement read.

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The DSA, which came into effect in August 2023, aims to regulate online platforms and ensure transparency and user protection.

The law prohibits “dark patterns” that manipulate users into sharing personal data or making decisions that benefit the company. The Commission’s investigation, launched in December, is also examining X’s content moderation practices, including the spread of illegal content and misinformation.

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