Elon Musk's X platform has come under scrutiny by the European Union for inadequate measures against harmful content, representing a recent instance of enforcement actions taken by EU regulators. The European Union is about to issue a formal warning to X, reports Bloomberg.

EU Threatens Financial Penalties

The warning from the EU, which could result in financial penalties up to 6% of X's revenue, will likely be conveyed by Internal Market Commissioner Thierry Breton. Under the Digital Services Act (DSA), online platforms are mandated to implement stringent controls over dangerous content, with non-compliance attracting heavy penalties.

According to Bloomberg, sources close to the ongoing evaluation reveal that preliminary findings will be notified to X shortly. The EU's aggressive stance underscores the enforcement of the DSA, aimed at creating safer digital spaces by holding platforms accountable for hosted content. This warning follows similar crackdowns on other major tech firms, illustrating the EU's firm regulatory direction.

Should X fail to comply with the DSA, it could face substantial financial repercussions. The EU's emphasis on mitigating the spread of harmful content through stringent measures displays the intensified regulatory scrutiny on major tech entities.

Insiders indicate the formal warning will likely be issued before the EU's summer recess, emphasizing the urgency. The looming risks and regulatory emphasis assert the necessity for all significant online platforms within the EU's jurisdiction to comply with the DSA.

Digital Services Act (DSA) Obligations

The Digital Services Act (DSA) imposes strict obligations on online platforms to combat the spread of illegal content and protect user safety:

• Platforms must put in place mechanisms for users to easily flag illegal content, and cooperate with “trusted flaggers” to detect and remove such content.
• Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) with over 45 million monthly active users in the EU must comply with the most stringent DSA rules.
• VLOPs and VLOSEs are required to conduct regular risk assessments to identify and mitigate systemic risks, such as the spread of illegal content and disinformation.
• The DSA grants users new rights, including the ability to understand the logic behind recommender systems and targeted advertising.
  Non-compliance with the DSA can result in fines of up to 6% of a company's global annual turnover.

The enforcement of the DSA is overseen by the European Commission and national Digital Services Coordinators, who have broad investigative and sanctioning powers. The goal is to create a safer and more transparent online environment for all EU citizens, with strong accountability measures for platforms.