The company was outlined as being too small in scale to impact businesses. Therefore, the Digital Markets Act would not be applicable here, the executive arm ruled as per sources familiar with the matter.
This means X will be dodging a huge bullet which comes in the form of stringent regulations that big tech must pay if they wish to continue with operations in the region. Moreover, a list of Dos and Don’ts has also been published on this matter to give a better idea of what new rules companies must face.
Now the findings of this probe will be published next month and that’s when X will be confirmed as not falling under the DMA because right now, these are speculations coming from sources who are familiar with the matter.
The Digital Markets Act is currently applicable to all big tech companies like Apple, Alphabet, Google, and Meta. The goal is to determine which companies are violating the rules and hindering competition for their gains. After the warnings are generated, they would be penalized financially with figures that go beyond the 10% global revenue and can reach 20% in situations where there are numerous breaches.
This particular law affects those with yearly sales that go beyond the $8.3 billion figure. Similarly, any platform services with more than $45M monthly users and 10k active users yearly would be penalized.
For now, the commission is refusing to speak on the matter. They hope to sidestep the crackdown regarding competition but X still faces so much scrutiny as the goal is to overcome dangerous content. It seems to be lacking big time in that department.
In July, regulators in the EU sent out warnings about X deceiving the masses. It was rolling out dangerous content where fines would go up to 6% of the company’s revenue. This is the case when the company fails to impress regulators with a justification for the behavior.
The crackdown against the firm’s content has sparked a lot of negative attention. Musk has used his app to gather support from former President Trump and even gone against woke ideology and mindsets.
He even went as far as to call out the government of Australia as fascists who are rolling out new laws to work against growing digital misinformation. This has to do mostly with social media pages.
Last month, Musk came head to head with the EU’s internal market head Thierry Breton about how the Frenchman warned in a new letter to better comply with the Digital Services Act. We’ve also seen the tech billionaire fight with the judge from Brazil’s Supreme Court and today, X is banned in the country for not tackling disinformation.
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by Dr. Hura Anwar via Digital Information World
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