The European Union (EU) has launched its first investigation related to the Digital Services Act (DSA). It is looking into whether Elon Musk’s X (once known as Twitter) is handling risks, managing content, and sharing data with researchers, and whether its ads and website design are transparent.

Thiery Bretton, Commissioner for Internal Market, had this to say about the investigation:

Today’s opening of formal proceedings against X makes it clear that, with the DSA, the time of big online platforms behaving like they are “too big to care” has come to an end. We now have clear rules, ex ante obligations, strong oversight, speedy enforcement, and deterrent sanctions and we will make full use of our toolbox to protect our citizens and democracies.

The Commission looked at X’s risk report, its transparency report, and answers to questions about spreading illegal content, especially regarding attacks by Hamas against Israel. Now, the EU is formally checking if X broke DSA rules.

The key areas of this investigation are:

  • Illegal Content: How well X follows DSA rules in stopping illegal content in the EU, including its risk management and content moderation methods.
  • Information Manipulation: How effective X’s ‘Community Notes’ system and other policies are in preventing misinformation and protecting public discussions and elections.
  • Platform Transparency: How transparent X is, especially about giving researchers access to data and how it manages its ad library.
  • Deceptive Design: Whether X’s user interface, especially the ‘Blue checks’ linked to subscriptions, misleads users.

If X is found to have broken the rules, it could be in trouble for not following certain parts of the DSA. The Commission is now investigating in detail, but this doesn’t mean X is already found guilty.

This is the first big action the Commission is taking under the DSA, three years after it was proposed.

Background of the Investigation

In October, X was already on the European Commission’s radar.

It was worried that X was not properly handling illegal content and misinformation about the conflict between Israel and Hamas. Following the conflict in the Middle East, X saw a surge of shocking images, like beheadings, on its platform. The company did not remove many of these images.

The company also did not respond to multiple requests for information. Even meetings with X’s engineers in San Francisco over the summer did not meet the expectations of European Commission officials, as two people told POLITICO.

Therefore, the EU wanted more information and officially requested it under the DSA. The EU is proceeding with the investigation after reviewing the information provided by X, its risk report, and its transparency report.

Understanding the Digital Services Act

X was labeled a Very Large Online Platform (VLOP) on April 25, 2023, under the DSA. It reported having 112 million monthly users in the EU.

As a VLOP, X has to follow DSA rules, like:

  • Managing Risks: Identifying and dealing with risks from their service and users.
  • Moderating Content: Informing users quickly about content decisions and being fair.
  • Designing its Website: Not misleading or manipulating users through its design.
  • Showing Ads Clearly: Keeping a detailed and public ad library.
    Sharing Data with Researchers: Allowing researchers to access platform data.

Future Course of Action

The Commission will continue to collect evidence and might ask X for more information or conduct interviews. It can also take temporary actions or decide if X didn’t comply. X can suggest ways to fix these issues.

There’s no fixed time to end this investigation. How long it takes depends on how complex the case is, how cooperative X is, and legal processes.

X executive Joe Benarroch indicated the company’s cooperation in an email to POLITICO:

X remains committed to complying with the Digital Services Act, and is cooperating with the regulatory process…It is important that this process remains free of political influence and follows the law. X is focused on creating a safe and inclusive environment for all users on our platform, while protecting freedom of expression, and we will continue to work tirelessly toward this goal.