The action from the EU has been described as “unprecedented in its scope” according to Hugo Shapero, thematic analyst at GlobalData.
Earlier this week, Thierry Breton, digital commissioner set out alleged infringements in a post on the social media platform. This included a suspected breach of obligation to counter illegal content and disinformation, a suspected breach of transparency obligations and a suspected deceptive design of the user interface.
Today we open formal infringement proceedings against @X :
— Thierry Breton (@ThierryBreton) December 18, 2023
⚠️ Suspected breach of obligations to counter #IllegalContent and #Disinformation
⚠️ Suspected breach of #Transparency obligations
⚠️ Suspected #DeceptiveDesign of user interface#DSA pic.twitter.com/NxKIif603k
X responded in a statement claiming that it was co-operating with the regulatory process and that it “remains committed to complying with the Digital Services Act (DSA)”.
The DSA only came into effect in 2022 and requires online platforms to mitigate the risk of disinformation and institute procedures to remove hate speech, while balancing this with freedom of expression.
Companies found guilty face fines of up to 6% of their global annual revenues.
Shapero noted that actions taken by the EU are the first of their kind under the DSA and could set a precedent for the regulation of other Very Large Online Platforms (VLOPs).
“This case will be viewed as a watershed for the strength of the DSA by X’s peers notably Meta.
“Should the EU enforce a significant penalty, it would signal its willingness to take on monopolistic Big Tech companies.”
Shapero believes that the EU’s investigation of X will most likely result in a fine, but it could also see X’s services banned from the EU.
The analyst is keen to note that this investigation has not emerged suddenly and that X has had time to prepare and take action to stave off regulation.
“The investigation is the latest chapter in a story that began with Musk’s decision to cut around 80% of the workforce within a year of completing his acquisition of Twitter in October 2022.
“These cuts affected areas like EU policy compliance, online trust and safety and multi-language content moderation.”
Shapero says that since the takeover, X has made limited effort to adhere to EU regulations and is unlikely to change any time soon.
"The dissemination of illegal and manipulated information remains the core of the EU’s case against X.
"The EU has persistently encouraged X to solve issues around disinformation, manipulation, and distribution of illegal content."
