EU Investigates X’s Compliance with New Digital Services Act over Content Moderation and AI Risks

The European Union has launched a comprehensive investigation into social media giant X under its new Digital Services Act (DSA), which requires online platforms to adopt stricter measures to combat unlawful and hazardous content. The European Commission, the EU’s administrative branch, has demanded detailed information from X regarding reductions in content moderation resources, as well as the dangers associated with the deployment of generative artificial intelligence (AI) technologies in the EU. According to a statement issued by the Commission on Wednesday, this move represents the investigation’s initial stage. This action follows the Commission’s initiation of formal legal action against X in December 2021 due to concerns about its methods for combating illicit content during the Israel-Hamas conflict. The Commission stated that the current investigation would concentrate on examining X’s fulfillment of its obligations to prevent the dissemination of unlawful content inside the EU, the efficacy of X’s actions to address information manipulation, and its efforts to enhance openness. The Commission claimed that its investigation would aid in building upon prior findings obtained in connection with the DSA probe into X. This includes X’s March 2024 Transparency Report and responses to earlier requests for information relating to the risks associated with disinformation related to generative AI. The Commission asserted that X must supply information concerning content moderation resources and generative AI by May 17, 2022, with outstanding answers due by May 27, 2022. Companies discovered to have violated the legislation may face fines equivalent to up to 6% of their worldwide annual revenues under the DSA. The DSA, which came into force in November 2022, demands that significant online platforms like X minimize disinformation risks and establish rigorous procedures for removing hate speech, while ensuring freedom of expression.