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Wednesday, October 16, 2024

Elon Musk’s X (formerly Twitter) Evades EU Antitrust Rules

Elon Musk’s X (formerly Twitter) Evades EU Antitrust Rules

Elon Musk’s X evades EU compliance with a shrug – but the clock’s ticking! | Photo sourced from queensofthedroneage.com. Edited by Nina Cook.

Elon Musk’s X (formerly known as Twitter) is at it again, making headlines for avoiding new EU regulations like a cat dodging bath time.

You’d think Musk would be on his best behaviour after his antics during the X rebrand, but apparently not. The European Union’s Digital Markets Act (DMA), which came into force this year, has X listed as a ‘gatekeeper’—meaning it’s subject to specific rules that prevent unfair business practices.

But compliance? That’s for mere mortals, it seems.

Elon Musk’s X evades compliance with the EU’s Digital Markets Act

In the spotlight is the EU’s landmark antitrust regulation, the DMA. This piece of legislation puts big tech firms under the microscope, and X is supposed to play by the rules. Under the DMA, platforms like X are required to make certain information accessible and transparent, ensuring that businesses and users aren’t strong-armed by sneaky algorithms or exclusive deals.

So, how’s Musk handling these new rules? Not well, it seems. Instead of opening the door to compliance, X is reportedly playing fast and loose, avoiding key responsibilities, and has been flagged for failing to comply with at least two major obligations under the DMA. Whoops.

Thierry Breton urges Elon Musk to comply with the DMA

EU Commissioner for Internal Market, Thierry Breton, has publicly called out Musk and his platform for failing to follow the DMA’s rules. In a formal letter and public statement, Breton emphasised that the time for Big Tech to avoid responsibility is over.

This is part of a broader effort by the EU to hold online platforms accountable under both the DMA and the Digital Services Act (DSA), aimed at curbing disinformation and harmful content.

X appears to be side-stepping the DMA by… well, just not doing what’s required. One notable issue is its lack of transparency with advertising data. The EU wants platforms to allow users and businesses to see why they’re being targeted with specific ads and what data is being used to do so. X? Not so much.

Will Musk face the music?

If X continues on this path, the consequences could be more than just a slap on the wrist. The EU isn’t playing around—they have the power to fine companies up to 10% of their global revenue. For Musk, that could mean forking over billions. But, given his track record, it’s hard to say if he’ll actually pay attention. After all, this is the same man who once threw a Tesla into space.

Is X running out of lives?

The DMA isn’t the only rule Musk’s platform is flouting. According to the report, X’s privacy and data handling practices are also raising eyebrows. It’s becoming clear that the platform, which has lost over 70 percent of its value since Musk’s acquisition, is playing a dangerous game of cat and mouse with the EU regulators. Whether it’s out of genuine confusion or deliberate mischief, X is proving that staying under the radar might not be so easy when the regulators are on your tail.



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