Breaking news

Musk’s X Is Misleading EU Consumers

Elon Musk’s social network X is violating European Union digital law by misleading users and not being transparent enough, the European Commission announced today.

KEY FACTS

  • The European Commission’s move follows a seven-month investigation under the Digital Services Act (DSA), which requires many major online platforms and search engines to do more to tackle illegal content and risks to public safety.
  • The commission said the user authentication system, known as a blue tick, is open to abuse by motivated malicious actors because anyone can pay to have a blue tick next to their name.
  • Previously, the blue tick “indicated reliable sources of information,” European Internal Market Commissioner Thierry Breton said in a statement. X now has the right to a defence, but if our opinion is confirmed, we will impose fines and demand significant changes, he added.

WHAT TO WATCH FOR

The EU’s move under the Digital Services Act could eventually pave the way for fines of up to 6% of X’s revenue if the company fails to allay the bloc’s concerns. There is no specific time frame for the next steps in the investigation.

A lack of transparency about ads also potentially violates the law, the European Commission said, as does the platform’s failure to open up its data to researchers.

Industry Uproar Over Reduction in Electric Vehicle Subsidies

The recent move by the government to curtail subsidies for electric vehicles has stirred significant discontent among car importers in Cyprus. The Department of Road Transport (DRT) has slashed available grants under the Electric Vehicle Promotion Scheme as of April 23, leading to a rapid depletion of the subsidy pool and leaving many potential applicants disappointed.

Importers’ Concerns

According to the Cyprus Motor Vehicle Importers Association (CMVIA), the lack of transparency and failure to engage stakeholders prior to the decision have eroded trust in the government’s commitments. Importers now find themselves facing a precarious situation, with substantial stocks of electric vehicles and mounting promotional expenditures.

Public Interest and EU Compliance

Although the scheme aimed to support the transition to zero-emission transport until 2025, the DRT states that the curtailing of funds was necessary to comply with European funding terms, which warned against delays in vehicle deliveries. This decision has fueled market uncertainty despite the application portal experiencing dynamic changes.

Industry’s Ongoing Demand

The CMVIA refutes any claims suggesting waning interest in electric vehicles, underscoring the rapid exhaustion of available grants as proof of substantial demand. They highlight the importance of meeting Cyprus’s green transition targets, including putting 80,000 electric vehicles on roads by 2030.

While the total budget for subsidies saw an increase to €36.5 million in 2023, thanks to additional funding, ongoing difficulties in timely vehicle distribution have led to premature closures of applications. In response, CMVIA has called for urgent dialogue with the Minister of Transport to reassess the decision, fearing that it could endanger the future of e-mobility in Cyprus.

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