Elon Musk’s X Breaches EU Law Over Blue Checkmark, Ad Transparency

X is in violation of several transparency and accountability measures required by Europe’s Digital Services Act, according to new findings announced Friday by the European Commission.

The Elon Musk-owned social media app, formerly known as Twitter, has breached requirements on advertising transparency, dark patterns, and data access for researchers. If it does not take steps to address the breach, it could face fines of up to six percent of its total annual turnover. X was the first platform to be formally investigated under the DSA and is now the first to be found in non-compliance.

The DSA, which went into full effect for all designated Very Large Online Platforms (VLOPs) and Search Engines (VLOSEs) in February, is the European Union’s “rulebook” for making the internet safer, fairer, and more transparent. It has since launched a number of formal proceedings against VLOPs like TikTok, AliExpress, and Meta.

“The DSA has transparency at its very core, and we are determined to ensure that all platforms, including X, comply with EU legislation,” said Margrethe Vestager, Executive Vice-President for a Europe Fit for the Digital Age, in the findings’ press release.

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The initial “formal infringement proceedings” launched in December were linked to the protection of minors and risk management of addictive design and harmful content, in addition to data access and advertising transparency concerns. The Commission also suspected a breach of obligations to counter illegal content and disinformation.

The Commission’s findings are preliminary, but are based on internal company documents, interviews with experts, and collaboration with national Digital Services Coordinators. The three main grievances include:

1. The way X designed and uses its “Blue checkmark” system for so-called account verification deceives users, as anyone can obtain such status. This is in violation of Article 25.
2. X does not comply with the DSA’s advertising transparency requirements, and its ad repository design has put barriers in place that limit access and does not allow for research into emerging risks. This is in violation of Article 39.
3. Researcher access to X's public data is not up to par, as it prohibits independent access, and its eligibility process actively dissuades researchers from carrying out their projects. This is in violation of Article 40(12).

X launched its ‘X Ads Repository’ in the EU last year to remain in compliance with the DSA. On its site, the company boasted access to information like ad reach and ads halted from running on the platform. However, in April, the Mozilla Foundation, a nonprofit dedicated to a more ‘human-centered internet,’ issued an independent report that stress-tested ad transparency tools provided by each DSA-designated platform and search engine. It found that although X provided public access to its ad repository, accessing ad data was “dramatically slower” than any other platform and much of the information was incomplete.

“X has now the right of defense — but if our view is confirmed we will impose fines and require significant changes,” said Thierry Breton, Commissioner for Internal Market, also in the press release.

There are a series of procedural steps that the Commission must now take under the rules of the DSA, including providing a “reasonable period” of time for the company to remedy the breaches. The Commission can also impose penalty payments and begin an enhanced supervision period to compel compliance. In the most extreme scenario, a platform may be temporarily suspended from operating in Europe.