Elon Musk’s social media platform X has been hit with a warning from the European Union for deceiving users into engaging with potentially harmful content, in the latest show of force by Brussels against Big Tech’s practices.

The bloc’s regulators are worried that X’s use of blue check marks for verified accounts "deceives” users into believing such accounts are safe when "there is evidence of motivated malicious actors abusing” the check mark system, regulators said in provisional findings issued on July 12.

The move from the EU under its Digital Services Act could eventually pave the way for fines of up to 6% of X’s revenue, if the company fails to appease the EU’s concerns. There is no specific timeframe for the next steps in the probe.

X’s lack of transparency on advertising also potentially breaches the DSA, the European Commission said, as does the platform’s failure to open up its data to researchers.

"X has now the right of defence - but if our view is confirmed we will impose fines and require significant changes,” EU Internal Market Commissioner Thierry Breton said. Before a financial penalty is ever imposed, EU regulators will have to adopt a final decision in the case.

Bloomberg previously reported that escalation was on the cards.

The warning shot against X follows the opening of an investigation under the DSA by the EU’s regulators in December. Brussels watchdogs have made inquiries into the platform’s handling of content after the Palestine-Israel conflict last year. Regulators also have opened investigations into Meta Platforms Inc, AliExpress, and ByteDance Ltd’s TikTok.

The DSA became legally enforceable last August, laying out content rules for social media platforms, online marketplaces and app stores. The rules force their owners to clamp down on misinformation and objectionable content such as hate speech and terrorist propaganda.

 - Bloomberg