Elon Musk’s X Faces EU Criticism for Misleading Practices

European regulators have charged Elon Musk’s X with violating the Digital Services Act (DSA), alleging that the platform misleads users and fails to meet transparency requirements.

Margrethe Vestager, a senior official at the European Commission, announced the preliminary findings on Friday, marking the first time such findings have been issued under the DSA. According to the Commission, X is not in compliance with key aspects of the DSA, including using dark patterns to mislead users, failing to provide a sufficient ad repository, and restricting access to data for researchers.

The EU officials criticized X’s handling of verified accounts, noting that anyone can obtain this status, leading to misuse by malicious actors. If confirmed, these findings could result in a fine of up to 6% of X’s global annual revenue.

The DSA, which went into effect in August, aims to combat misleading practices like dark patterns, where design elements subtly coerce users into decisions that benefit the company. The investigation also scrutinizes X’s content moderation practices, particularly regarding the spread of illegal content and misinformation.

The probe was initiated after EU officials raised concerns over the presence of Hamas-affiliated accounts on X following the group’s attacks on Israel on October 7.