The European Union is reportedly on the cusp of deciding whether X's attempts to combat illegal or harmful content are compliant with the bloc's digital service rulebook. A probe into X's risk management and content moderation, launched in December 2023, will be concluded "as early as legally possible," according to a letter to EU lawmakers seen by Bloomberg.

The investigation, prompted by a complaint from center-right German lawmakers, focuses on X's Community Notes system and its effectiveness in tackling information manipulation. Specifically, the probe examines "the dissemination of illegal content in the context of Hamas' terrorist attacks against Israel." Preliminary findings suggest that X is in breach of the Digital Services Act (DSA) regarding advertising transparency, dark patterns, and its "blue check" user verification system.

X, previously known as Twitter, has undergone significant changes since Elon Musk's purchase in 2022. Musk transformed the verification system into a subscription service and cut back the trust and safety team to focus on community-driven moderation. However, these changes have been criticized by the EU, which has expressed concerns over rising levels of disinformation on the platform. Musk himself has been accused of promoting disinformation, which has led to further scrutiny from regulators.

The EU's investigation comes as Meta, inspired by X, announces sweeping moderation changes on its own platforms. Meta will scrap its third-party fact-checkers in favor of implementing its own Community Notes program, alongside removing restrictions around topics like immigration and gender identity. While these changes will initially be rolled out in the US, both Meta and X operate on a global stage, and the eyes of EU regulators are ever watchful.

The implications of the EU's investigation are significant. Platforms deemed to have breached the DSA risk fines of up to six percent of their global yearly revenue. As US tech giants increasingly heed to Republicans' complaints regarding online speech rules, the EU's verdict on X's content moderation efforts will have far-reaching consequences for the industry as a whole.

In the context of the global tech landscape, the EU's investigation serves as a reminder of the bloc's commitment to regulating digital services and ensuring accountability from tech giants. As the EU pushes forward with its probe, the industry will be watching closely, awaiting the verdict on X's content moderation efforts and the potential ripple effects on the broader tech ecosystem.