As a seasoned crypto investor with a keen interest in tech giants like X, I find myself closely watching this unfolding drama between Elon Musk and the EU Commission. Having navigated through the volatile crypto market and witnessed numerous regulatory battles, I’ve learned to appreciate the intricacies of global politics and their impact on business operations.
The EU Commission President, Ursula von der Leyen, did not approve a letter sent from Thierry Breton, the EU Internal Market Commissioner, to Elon Musk, who owns social media platform X. (This version maintains the original structure but uses simpler language and removes unnecessary words.)
As a analyst, I subsequently discovered a threatening letter that warned Elon Musk about potential legal action under the Digital Services Act (DSA), should the content on X pose a risk to EU citizens. Notably, this content was recently published on the platform prior to Musk’s interview with the US presidential candidate Donald Trump.
EU Commission Denies Pre-Warning on Trump Musk Interview
Based on a Financial Times article, it’s been stated that the European Commission never granted prior approval for Thierry Breton’s letter to Elon Musk. This letter, published on X, urged Musk to comply with the Digital Services Act requirements, specifically in regards to eliminating content that could negatively impact EU citizens.
The Commission pointed out that neither the delivery time of the letter nor its contents were coordinated with or approved by President Ursula von der Leyen or any other commission members.
NEWS FLASH: The European Union has accused its Internal Market Commissioner of acting independently, allegedly sending a warning letter to Elon Musk regarding potential penalties just prior to Elon’s interview with U.S. presidential candidate Donald Trump on X. This action is said to have been unorthodox and off-script.
— unusual_whales (@unusual_whales) August 13, 2024
An unnamed EU official commented that Breton occasionally works independently, sometimes without consulting other high-ranking commission members. The delivery of the letter, which occurred after Musk met with Trump, raised eyebrows within the Commission. The content of the letter centered on Musk’s responsibility to filter out harmful content on X due to its large user base, and the fact that one-third of these users are based in the EU.
Investigation into X’s Compliance with DSA
Currently, the European Commission is investigating company X for potential breaches of the Digital Services Act, a law enacted in 2022 due to growing reliance on social media. This investigation stems from concerns over the handling of illegal content and disinformation, issues that are gaining traction within the EU. The Commission has emphasized that X’s method for dealing with problematic content will be significant as it continues its probe.
In his correspondence, Breton offered concrete instances showing the connection between content on X and recent demonstrations, voicing apprehensions about the platform’s responsibility in preventing speech from inciting potential dangers. Additionally, the letter served as a reminder that Musk is bound by certain legal commitments under the DSA, implying the need to take appropriate actions to manage the dissemination of harmful content effectively.
Regardless, if the platform is found guilty of breaching the Digital Services Act, it could face stiff penalties, such as fines amounting to 6% of its total worldwide revenue. Preliminary findings from the investigation suggest that X might have been unclear in their marketing strategies and potentially misled consumers by using a paid subscription-based blue tick verification process.
Elon Musk’s X Probed in Austria and Pushes Antitrust Case
As an analyst, I’ve observed that while the platform has been under close scrutiny by the EU commission, it has also encountered other legal hurdles within Europe. Most recently, the Austrian privacy organization NOYB lodged a complaint against X with the Irish Data Protection Authorities (DPAs), alleging that the platform collects personal data for AI training without obtaining valid consent from users. This complaint, spearheaded by privacy activist Max Schrems, has sparked an investigation into potential violations of data protection laws in Austria.
Simultaneously, the platform is presently engaged in a legal dispute regarding antitrust claims, involving several prominent entities and an advertising industry association. It alleges these parties have colluded with the intention of damaging the platform.
In my analysis, I’ve come across a report by Coingape that reveals a legal battle initiated by X’s CEO, Linda Yaccarino. The lawsuit targets corporations like CVS Health, Mars, and Unilever, who are accused of engaging in collusive activities to undermine Elon Musk’s platform as well as other conservative media organizations.
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2024-08-14 03:20