European Union regulators have fined Elon Musk-owned social media platform X (formerly Twitter) 120 million euros ($140 million) for failing to comply with the bloc’s digital regulations.
The European Commission announced its decision after conducting a comprehensive two-year investigation launched under the digital services law of the bloc’s 27 countries, during which regulators assessed compliance with the bloc’s rules on illegal content, systemic risks and platforms’ liability.
What is the Digital Services Act?
The Digital Services Act, also known as the DSA, is a sweeping set of rules designed to hold online platforms more accountable for the security and integrity of their digital spaces.
It requires companies to take proactive measures to protect European users, clean up harmful or illegal content and products on their sites. It also requires sites to be transparent about how their algorithms work.
The law gives regulators stronger enforcement powers, including the ability to impose heavy penalties on platforms that fail to comply, making non-compliance a costly risk for companies operating in the region.
What rules did X break?
The commission noted that it is punishing X, formerly known as Twitter, for three different violations of the law’s transparency requirements, the AP reported.
But the decision carries a diplomatic risk as it could infuriate President Donald Trump, whose administration has repeatedly criticized digital regulations from Brussels and warned of retaliation if US tech companies are punished.
According to regulators, the blue tick platform violated the law due to its “deceptive design” that could potentially expose X users to various scams and manipulation.
X also failed to comply with requests for its database of advertisements and providing researchers with access to public data, the AP reported.
X was already served with a formal warning last year as European Union regulators claimed it had failed to combat dangerous content.
Why was DSA enforced?
The DSA became legally enforceable in August 2023, hitting big tech firms with a comprehensive list of dos and don’ts based on decades of antitrust enforcement in the digital economy.
According to Bloomberg, it was put in place to stop unfair practices before they take hold and allow digital giants to dominate markets.
