Observed Signal · Dec 19, 2023 · Regulation · Source: OnlineMarketing.de · Impact: 3/5 · Sentiment: Negative
EU Opens DSA Probe Against X
The European Commission has initiated proceedings against the platform X under the Digital Services Act (DSA) amid allegations of illegal content and misinformation. The investigation focuses on X’s compliance with EU rules governing risk management, content moderation, advertising transparency, and data access for researchers. It also examines practices described as Dark Patterns and the potential misrepresentation of blue verification ticks. The DSA can impose fines up to six percent of global turnover if violations are found. The case could impact X’s partnerships and advertising revenue, which has declined since Elon Musk’s takeover. The inquiry builds on prior EU scrutiny from 2023 related to disinformation in the Hamas-Israel conflict and ongoing discussions about moderator training materials.
Regulatory action by the EU under the Digital Services Act against a major platform with potential penalties and industry impact.
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Key Takeaways & Evidence Grounding
- European Commission opened proceedings against X under the Digital Services Act (DSA).
- Probe covers risk management, content moderation, ad transparency, and data access for researchers.
- Investigating Dark Patterns and potential misrepresentation of blue verification ticks.
- Fines under the DSA can reach up to 6% of global turnover.
- X has experienced a decline in advertising revenue since Elon Musk acquired the platform.
Connected Companies & Entities
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EU Accepts X's Proposed Transparency Changes
The European Commission has provisionally accepted planned changes from Elon Musk's social platform X intended to increase transparency after enforcement under the EU Digital Services Act (DSA). The Commission had sought a €200 million fine from X at the end of 2025; the company previously paid €120 million over misleading account verification badges. The Commission cited issues including opaque advertising documentation and withheld researcher data. X has been given six months to implement the accepted measures. U.S. officials criticized the EU decision, and X said it would appeal the fine in court.
EU tightens DSA rules for ChatGPT, Reddit, Roblox
The European Commission has designated ChatGPT (OpenAI), Reddit and Roblox as subject to stricter obligations under the EU Digital Services Act (DSA) after each exceeded the threshold of 45 million average monthly users. The three services have four months to adapt to the new requirements, which expand obligations on child protection, illegal content removal and transparency. ChatGPT is already covered by the EU AI Act and is additionally classified under the DSA as a very large online search engine. The DSA has been in force since February 2024; Brussels has previously opened procedures against platforms such as TikTok, Meta properties and Snapchat and imposed multi-million euro fines on services including X, Temu and AliExpress.
France Escalates Criminal Probe Into Elon Musk
French prosecutors have escalated an investigation into Elon Musk and former X CEO Linda Yaccarino to the criminal level by formally transferring the case to multiple investigating judges. The probe, reported by CNBC and referenced by t3n, centers on allegations that X’s algorithms were deliberately modified to amplify far-right content and interfere in French political debate. Investigators are also examining the spread of Holocaust denial, sexualized depictions of women and children, and the creation of deepfakes — including content reportedly produced via X’s AI chatbot Grok. Musk and Yaccarino failed to attend a voluntary hearing on April 20. The move signals French intent to hold platform leadership directly accountable for algorithmic design and moderation outcomes.
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