Elon Musk, the CTO and chairman of X, recently made bold claims on social media accusing the European Commission (EC) of offering the social media platform an “illegal secret deal” to censor speech in order to avoid being fined in the EU. According to Musk, the EC allegedly proposed that X censor speech without informing anyone in exchange for not imposing a fine. Musk stated that while other platforms accepted this deal, X did not. He further mentioned that X is prepared for a public battle in court to address the issue.
Investigation Findings
The European Commission’s investigation under the Digital Services Act (DSA) found that X breached the DSA in various key transparency areas. The report highlighted areas such as dark patterns, advertising transparency, and data access for researchers where X failed to comply with the regulations. The investigation revealed that X’s “Blue checkmarks” and verified accounts are deceptive and can be obtained by anyone, leading to misuse by bad actors. Additionally, the platform lacks a reliable advertising repository, making it difficult for supervision and research. X also restricts eligible researchers from accessing public data through its terms of service and API access process, discouraging research efforts with high fees.
Next Steps
The European Commission has allowed X to exercise its rights of defense by providing a written response to the preliminary findings. The EC will further consult with the European Board for Digital Services to address the compliance failures identified in the investigation. The final decision on the matter is pending, but potential fines of up to 6% of X’s worldwide annual turnover could be imposed. Moreover, X may need to make significant changes to its operations to continue functioning in the EU, including enhanced supervision and penalty payments.
The allegations made by Elon Musk and the findings of the EC’s investigation shed light on the challenges faced by X in complying with the Digital Services Act. It is essential for platforms like X to prioritize transparency, data access, and compliance with regulations to maintain trust and integrity in the digital realm. The outcome of this case will have significant implications for X and its operations in the European Union.