EU Raises Prospect of Big Fine or Ban if Twitter Fails to Follow New Legislation – The EU has pressured Twitter with a large fine or ban after warning that it must “significantly increase” its efforts to comply with new online legislation. Elon Musk, Twitter’s new owner, was told he had “huge work ahead” to comply with the EU’s Digital Services Act, which requires tech companies to address issues such as abusive posts and disinformation.
Thierry Breton, the EU’s internal market commissioner, told Tesla CEO that Twitter would have to significantly increase its efforts to “pass the grade,” implying that the platform was in danger of failing to comply with the act. “I welcome Elon Musk’s statements of intent to get Twitter 2.0 ready for the DSA,” said Breton. “I am pleased to hear that he has read it carefully and considers it as a sensible approach to implement on a worldwide basis. But let’s also be clear that there is still huge work ahead, as Twitter will have to implement transparent user policies, significantly reinforce content moderation and protect freedom of speech.”
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He also added that Twitter would have to “tackle disinformation with resolve” and limit targeted advertising, including banning profiling of child users for advertising purposes. According to the Financial Times, Breton reiterated the penalties for violations of the act, which include fines of up to 6% of global turnover – or around $500 million in Twitter’s case – or a temporary suspension of the service if refusal to comply endangers people’s lives and safety. The EU describes suspension as a “last resort.”
Musk has fired half of Twitter’s 7,500 employees since purchasing the company for $44 billion in October, with a further 1,200 reportedly leaving in November after Musk told remaining employees to commit to being “hardcore” or leave. Since the takeover, the company’s head of trust and safety, who oversaw content moderation at Twitter, has also resigned. Because of the departures, fears that Musk will relax content moderation policies, and a botched attempt to relaunch Twitter’s verified user system, many advertisers have paused their spending on the platform. Twitter has also stated that it will no longer enforce its anti-Covid-19 misinformation policy.
A readout of the video call between Musk and Breton described it as a “constructive working meeting” with an agreement between both parties to carry out a “stress test” on compliance with the act early next year, as well as preparing for an independent audit of the platform. The readout added that Musk had “committed to comply” with the DSA. In a blog post published on Wednesday, Twitter said its trust and safety team was continuing “diligent work” to keep the platform safe from abuse, hateful content and any violation of its rules. It added that the team remained “strong and well-resourced.”
Meanwhile, Janet Yellen, the US Treasury Secretary, declined to say whether the Treasury-led Committee on Foreign Investment in the United States (CFIUS) was investigating Twitter. CFIUS may investigate the level of non-US investment in Musk’s takeover, which includes financial support from Saudi Arabian investor Prince Alwaleed bin Talal; Qatar Holding, which is part of the Qatar Investment Authority; and Binance, the world’s largest cryptocurrency exchange, whose holding company is registered in the Cayman Islands.
Speaking at a New York Times conference on Wednesday, Yellen said CFIUS looks closely at acquisitions and investments in US firms by foreign buyers that could pose national security risks. “I’m not going to say specifically what we are or aren’t looking at,” Yellen said. “We don’t comment on work that’s in progress. But if there are such risks, it would be appropriate for CFIUS to have a look.”
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On Monday Musk accused Apple of threatening to block Twitter from its app store and said Apple was pressuring Twitter over content moderation demands. Yellen said she believed it was appropriate for mobile technology giants Apple and Google to demand certain content standards. “I think it’s a good thing, if Apple is looking at the content. Most broadcast stations are subjected to standards in terms of what they broadcast to the public. And Twitter’s not really that different from other broadcast stations,” Yellen said. Asked if it was good that such platforms were overseeing content, Yellen said. “It’s a kind of control that I think is needed.”
