EU investigates "X": Musk's company faces billions in fines for misinformation

The EU is taking the online service "X" by the scruff of the neck and opening proceedings against the platform. The aim of the investigation is to find out to what extent the allegations made by the EU against "X" are true.

"X" may have violated the rules on risk management. "X" has also done an inadequate job of moderating misinformation and hate speech, preventing the distribution of illegal content and advertising transparency. At least that is the EU's accusation.

Dark patterns and blue tick

The focus is also on so-called dark patterns. These are tricks - often graphics - used to trick users into acting against their own interests. Take cookie banners, for example, where the "Accept all" button is much larger and more colourful than the "Reject" button.

In the case of "X", this also applies to the blue tick marks that were previously used to verify accounts. Today, they are also used for paid content - presumably to increase trust in the respective account.

Faulty "X" report is the reason for the proceedings

The EU Commission has categorised X as a "Very Large Online Platform" (VLOP) due to its size (112 million active users per month). Under the Digital Services Act (DSA), these companies are obligated to take certain actions. For example, the DSA requires these companies to have certain reporting and action mechanisms for illegal content.

After numerous reports of illegal and misleading articles - especially in connection with the Hamas attack on 7 October this year - the platform was sent a questionnaire. The EU wanted to know what "X" intended to do about this. The EU Commission decided to initiate proceedings partly based on the evaluation of this questionnaire.

It could be expensive for Musk

The responsible persons are currently conducting interviews and examinations. They can also decide on interim measures - but "X" could also take action on its own initiative and improve the defects. The procedure has no specific deadline, so it could still drag on. However, if it ends in "X's" favour, it can be very expensive: The fine could amount to up to 6 per cent of the platform's global turnover.

These proceedings are symbolic

The proceedings are still in the early stages and could end without any results. However, the fact that the proceedings have been initiated at all speaks for itself. On the one hand, the EU is flexing its muscles. As with the USB-C regulation, when they were in a clinch with Apple, those responsible are showing that they do not shy away from a confrontation with "big players". The EU also emphasises this with the statement that it can take "interim measures".

The Digital Markets Act, or the Digital Services Act, is already demonstrably not a paper tiger - it will be applied. The EU can thus emancipate itself to some extent from the accusation of being a cumbersome, technologically dependent construct. The fact that the investigation will now continue for a while and that "X" has been given the opportunity to rectify the situation independently also demonstrates legal fairness.