According to insiders, social media platform X will receive a formal warning from the European Union and may become the third tech company targeted by the EU recently.
Compared with the European Union's Digital Markets Act, the Digital Services Act focuses more on the privacy and other rights of users.
Media reports state that Elon Musk's social media platform X (formerly Twitter) will receive a formal warning from the European Union and may become the third tech company targeted by the EU recently.
Insiders revealed that Thierry Breton, the EU's internal market commissioner, may announce this upgrade before the summer break, paving the way for "a fine of 6% of X's global annual revenue."
Insiders added that if X does not make the necessary changes based on the European Commission's preliminary investigation, regulators may make a formal decision before the end of the year. After that, X may face economic sanctions for non-compliance.
As early as December last year, the European Union announced an investigation into X, stating that it may have violated the Digital Services Act (DSA) by spreading illegal content against the background of the Hamas-Israel conflict. This is the first time that the EU has initiated formal proceedings under the Digital Services Act.
Previously, Caixin reported that after taking over Twitter, Musk carried out "violent layoffs" and it was reported that he cleared nearly two-thirds of the 7,500 employees in three weeks, including reducing the trust and security team of the company.
It is understood that the EU's Digital Services Act aims to strengthen user online security and to prompt relevant companies to take responsibility for harmful content, false information, advertising tracking behavior and anti-competitive behavior.
Compared with the Digital Markets Act (DMA), which focuses on anti-monopoly, the DSA focuses more on the privacy and other rights of users. After the DSA and DMA are approved, the EU is increasing law enforcement efforts against tech companies through these two laws, and the speed of action is becoming faster and faster.
In the past two weeks, the EU has charged US tech giants Apple and Meta Platforms with monopolistic behavior according to the DMA. Among them, the European Commission believes that Meta's "pay or agree" advertising model does not meet the requirements of the DMA.
At the same time, Meta is also under investigation by the DSA for lack of effective real-time speech and election oversight tools for its social platforms before the European Parliament elections.
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