Elon Musk’s Twitter Inc. is reportedly expected to comply with stricter EU content auditing regulations, although some doubt the platform is big enough to qualify. For Elon Musk, that means his streamlined company will be subject to a more intrusive regulatory system and could face hefty fines – as much as 6 percent of the company’s revenue – or even be banned from operating in Europe if it doesn’t comply.
At the same time, the EU will avoid the embarrassment of one of the world’s most influential platforms evading its control over online content.
Regardless of size, tech companies must comply with the basic rules of the EU’s Digital Services Act (DSA) by removing illegal content in the EU’s 27 countries. Platforms with more than 45 million monthly active users will be identified as Very Large Online Platforms, known as VLOPs (very large online platforms), and will face stricter centralized scrutiny from the Brussels-based EU executive body.
Some EU officials are concerned that Twitter may not have enough users to be recognized as a VLOP, allowing Elon Musk to avoid the most significant changes to EU content review rules. In late October, before Elon Musk bought the social media site, some insiders believed the company would not reach the 45 million user threshold because the U.K. had left the EU, according to former employees with knowledge of the situation.
Even so, the company is still preparing to be recognized as a VLOP and plans to conduct an internal audit to ensure it meets DSA regulations, people familiar with the matter said. Employees expect the number of users to grow and are concerned that if it has fewer than 45 million monthly active users, it could hurt its reputation with advertisers.
Now, it seems likely that Twitter will reach the 45 million user threshold, in part because Brussels is considering a broader definition of active users that could include people who visit the site as well as registered, logged-in users. This would significantly increase the number of Twitter users in Europe.
Social media sites must report their number of users in the EU by Feb. 17, after which the enforcement agency must determine which sites are VLOPs. those companies identified must be in compliance with the DSA by Sept. 1.
Platforms designated as VLOPs must submit annual reports to the European Commission indicating that they have sufficient content reviewers in Europe and are limiting the spread of false information. In addition, these platforms must open up their algorithms for inspection by the regulator, such as those that determine which content appears at the top of people’s feeds. Administrations can force companies to change their algorithms or raid their offices. If they don’t comply with these regulations, the European Commission could levy huge fines or even ban the companies from operating in the EU.
Elon Musk has been trying to reassure the European Commission for months that he would take EU content review rules seriously. After a recent video call with EU Internal Market Commissioner Thierry Breton, Elon Musk tweeted that his goals of “transparency, accountability and accuracy of information” are in line with the EU. He pointed to Twitter’s “Community Notes” feature, which allows users to fact-check services, as a step in that direction.
Elon Musk has also often changed his mind, and his relationship with U.S. regulators has been controversial. His massive layoffs at Twitter and frequent changes to the platform’s rules have worried EU and U.S. lawmakers interested in Twitter’s data and privacy practices.
In a statement last week, Brayton said Twitter is expected to comply with the DSA, but that “the next few months are critical to turning the promise into reality.”
