According to reports by the German newspaper “Handelsblatt”, the European Commission has concluded its first investigation against a social media platform under the “Digital Services Act”(DSA), with the authority now deciding whether to impose a multimillion-euro fine on the network X, owned by US billionaire Elon Musk.
While the Commission officially denies that the case is at a close, the decision on whether to impose a fine is considered highly political. If a fine is issued, it could amount to up to six percent of the platform’s global annual revenue.
Since December 2023, several investigations have been underway against the platform under the “Digital Services Act”(DSA), which subjects internet companies to strict regulation. The case in question accuses X of not adhering to transparency rules for advertising, as well as allegedly denying researchers sufficient access to data and misleading users with the so-called “blue checks”.
The Commission’s investigation is seen as a test case for the new regulatory framework, which aims to hold online platforms accountable for their actions and ensure a level playing field for all companies operating in the digital space. The outcome of the investigation is expected to have significant implications for the future of digital regulation in the European Union.