The European Union has issued a warning to Elon Musk’s social media platform, X, for deceiving users with potentially harmful content. The EU regulators are concerned that X’s use of blue check marks for verified accounts is misleading users into believing these accounts are safe. After Musk’s acquisition of the platform, the verification marks were given to anyone who paid a monthly fee. The EU’s Digital Services Act (DSA) may lead to fines if X fails to address the EU’s concerns. The DSA requires platforms to take responsibility for user protection and content cleanup.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| EU warning against X | Regulation and accountability | Increased regulation and accountability | Concerns over harmful content and misinformation |
| X’s use of blue check marks | Misleading verification system | Verification system becomes more reliable | Abusive use of check mark system |
| X’s lack of transparency | Transparency of advertising | More transparency in advertising | Compliance with Digital Services Act regulations |
| Investigations by EU regulators | Increased scrutiny | Stricter regulations for tech platforms | Ensuring user protection and content standards |