European regulators have charged Elon Musk’s X, formerly known as Twitter, with violating the Digital Services Act (DSA), accusing the platform of misleading its users and failing to meet transparency standards. The European Commission, the executive arm of the European Union, issued its preliminary findings on Friday, highlighting several key areas of non-compliance.

Margrethe Vestager, a senior official at the European Commission, stated, “Today we issue for the first time preliminary findings under the Digital Services Act. In our view, X does not comply with the DSA in key transparency areas, by using dark patterns and thus misleading users, by failing to provide an adequate ad repository, and by blocking access to data for researchers.”

The Commission’s statement elaborated on how X’s approach to verified accounts does not align with industry practices and deceives users. Unlike traditional methods of verification that authenticate the identity of users, X allows anyone to subscribe for the “verified” status. This practice has led to malicious actors abusing the verified account feature to mislead users, according to the EU’s findings.

Additionally, the European Commission criticized X for not providing sufficient access to data for researchers, which hampers efforts to scrutinize the platform’s activities and ensure accountability. The failure to maintain an adequate ad repository also drew ire, as it obstructs transparency in advertising practices.

If the preliminary findings are confirmed, X could face substantial financial penalties. The Commission has the authority to impose fines of up to 6% of X’s annual turnover. This could translate into significant financial repercussions for the platform, underscoring the EU’s commitment to enforcing the DSA.

Elon Musk’s acquisition of Twitter and its rebranding to X has been marked by several controversial changes, including altering verification processes and modifying platform policies. These changes have drawn significant scrutiny from regulators and users alike. The EU’s latest charges add to the growing list of regulatory challenges facing the platform.

The Digital Services Act, which came into force recently, aims to create a safer digital space by setting higher standards for transparency and accountability on online platforms. The act mandates platforms to take stronger measures against illegal content, ensure transparency in advertising, and provide researchers access to platform data.

The European Commission’s move to issue preliminary findings against X is a significant step in the enforcement of the DSA. It signals the EU’s readiness to hold major tech platforms accountable for their practices and to protect users from deceptive and non-transparent practices.

As the situation develops, it remains to be seen how X will respond to these charges and whether it will take steps to align its practices with the stringent requirements of the DSA. For now, the platform faces the possibility of substantial fines and increased regulatory scrutiny as it navigates this latest challenge.