The social media platform could face a fine of up to 6% of its global turnover if found guilty. Credit: Matt Cardy/Getty Images.

EU tech regulators have ruled that Elon Musk’s social media company, X, breached EU online content rules, in a new finding that could lead to a significant fine. 

The European Commission has been leading a seven-month investigation under its DSA, which puts the onus on large online platforms to proactively tackle illegal content. 

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The bloc’s regulators looked into the social media platform’s advertising transparency and data access for researchers. 

X has failed to comply with a DSA requirement that companies provide a reliable advertisement repository, according to the Commission. 

The Commission also found that X’s verified accounts negatively impact users’ ability to make informed decisions about the authenticity of the accounts they interact with. 

EU industry chief Thierry Breton said in a statement that X has the right of defence “but if our view is confirmed we will impose fines and require significant changes”.

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The social media platform could face a fine of up to 6% of its global turnover if found guilty. X will have several months to defend itself. 

The Commission said it has also put in place a whistleblower tool, allowing employees and other people with knowledge to contact the Commission in an anonymous way.

Under the DSA, platforms are required to share more data with regulators about how they moderate and distribute content through algorithms.

They must also submit to vetting by research and auditing companies to ensure their practices remain compliant.

Users must also have the option to report illegal content to providers. Equally, users must be informed if their content is removed or hidden – and platforms must explain why.