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EU’s regulatory hammer coming down on X over content concerns

Posted on by darion


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The decision on X may be announced before last week of July

What’s the story

Elon Musk’s social media platform, X, is set to face a formal warning from the European Union (EU) due to its inability to control dangerous content, according to Bloomberg.

This would mark the third time in recent weeks that EU regulators have taken action against major tech companies.

If X fails to make necessary changes in response to the European Commission’s preliminary findings, it could face fines of up to 6% of its revenue.

EU’s decision expected before summer recession

The decision regarding X’s handling of dangerous content is anticipated to be announced by Internal Market Commissioner Thierry Breton before the EU’s summer recession, sources familiar with the case told Bloomberg.

If X does not address the concerns raised by the European Commission, a formal decision could be made before year-end, leading to financial penalties for non-compliance.

Investigation follows Hamas-Israel conflict

The EU’s action against X follows an investigation launched in December into the platform’s content handling after the October 7 Hamas attacks on Israel.

Brussels watchdogs made several inquiries into the platform’s handling of content following the Hamas-Israel conflict.

Other major platforms, including Meta Platforms Inc., AliExpress, and ByteDance Ltd.’s TikTok, are also under investigation for similar issues.

The proceedings against X are ongoing with no set deadline for next steps.

EU enforces new laws on digital platforms

The EU has recently increased enforcement of its new powers under two laws: The Digital Services Act (DSA) and the Digital Markets Act (DMA).

The DSA, enforceable since last August, outlines content rules for social media platforms, online marketplaces and app stores.

Meanwhile, the DMA regulation came into effect on March 7 to prevent abusive conduct by big tech firms in the digital economy.

X faces controversies amid regulatory scrutiny

In recent months, X has been embroiled in several controversies, including advertisers leaving the platform and users being spammed with AI-generated content.

In a notable instance, Hyundai paused its ad spending on X in April due to the company’s promotions appearing alongside harmful content.

These issues add to the challenges faced by X as it navigates regulatory scrutiny from the EU.