Elon Musk, the CTO and chairman of X, recently took to social media to make a bold accusation against the European Commission. He claimed that the EC had offered X an “illegal secret deal” to censor speech in order to avoid being fined in the EU. Musk stated that the Commission proposed that X “quietly censored speech without telling anyone” as a way to bypass potential fines. He further mentioned that while other platforms accepted this deal, X did not, hinting at a potential legal battle in the future.
The European Commission’s investigation under the Digital Services Act (DSA) revealed several areas where X allegedly failed to comply. These included issues related to dark patterns, advertising transparency, and data access for researchers. The report highlighted concerns about X’s use of “Blue checkmarks” and verified accounts, which can be obtained by anyone and are sometimes misused by malicious actors. Additionally, the platform was criticized for lacking a reliable advertising repository and for imposing barriers that hindered supervision and research regarding potential risks. Eligible researchers were also reportedly denied access to public data in accordance with the DSA due to X’s terms of service and API access process.
If found guilty of these compliance failures, X could face hefty fines of up to 6% of its worldwide annual turnover. Moreover, the platform may be required to make significant changes to its operations in order to continue operating within the EU. This could involve enhanced supervision measures and periodic penalty payments until the issues are adequately addressed. The final decision on this matter is still pending, with X having the opportunity to present a written response to the preliminary findings before a final ruling is made.
The allegations made by Elon Musk and the findings of the European Commission’s investigation paint a concerning picture of X’s operations in the EU. The potential consequences of failing to comply with the DSA are significant, and the platform may need to make substantial changes to avoid penalties. It remains to be seen how X will navigate this challenging situation and whether it will ultimately face the repercussions outlined in the preliminary findings.
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