Latest news with #DigitalServicesAct
Arabian Post
26 minutes ago
- Business
- Arabian Post
EU Intensifies Oversight of Musk's xAI–X Deal
European Commission regulators have launched an in-depth inquiry into the corporate restructuring of X following its $33 billion acquisition by Elon Musk's AI venture, xAI in March. Officials have issued formal information requests probing whether the deal reshaped the obligations and liabilities under the Digital Services Act, which could trigger fines of up to 6 per cent of global turnover or even a suspension of operations within the EU. At stake is not merely compliance but scope. Brussels is examining if revenue from Musk's wider corporate empire—including xAI, SpaceX, Neuralink and The Boring Company—should be aggregated with X's earnings when calculating any DSA penalty. Such consolidation would dramatically increase the financial stakes, positioning the potential fine among the largest ever under the regulation. This intensified scrutiny builds upon a probe initiated in December 2023 over allegations that X failed to curb harmful content and employed deceptive design. The spotlight has honed in on features such as the blue check verification, which critics say misled users into attributing credibility purely on subscription status. X has contested these accusations, reflecting the gravity with which Brussels regards compliance under the DSA. ADVERTISEMENT Regulatory sources indicate that Brussels aims to reach a decision before its summer recess in August 2025—though there remains a possibility that deliberations will extend. If a penalty is levied, whether tied solely to X or inclusive of Musk's other holdings, the platform could face a multi‑billion‑dollar bill. Repeat offenders risk more severe sanctions, including operational bans within the bloc. The commission's current line of inquiry follows earlier requests for internal documentation on X's algorithmic decision‑making and moderation protocols issued in January 2025, aimed at uncovering systemic bias or political amplification. EU digital chief Henna Virkkunen has signalled that the commission's enforcement of the DSA will be uniform across all major platforms—regardless of headline-grabbing personalities or companies. For the xAI–X merger, Brussels appears particularly concerned with whether the March acquisition alters liability thresholds or the classification of X as a 'Very Large Online Platform'—a designation that comes with more rigorous reporting and compliance obligations. The structure of the deal could influence if DSA fines are calculated based solely on X or on the broader Musk group. European digital regulators are keen to demonstrate the potency of the DSA, which took effect in late 2022, aiming to set a precedent in holding tech giants accountable across interconnected corporate structures. X's contested manoeuvres with the blue checkmark and structural repositioning have become emblematic of the challenges regulators face enforcing meaningful accountability. Musk's companies have so far declined to respond to the commission's most recent information requests. Meanwhile, EU officials continue to gather internal documents, revenue data and structural filings to determine the extent of exposure under DSA provisions before any final ruling.
Yahoo
2 hours ago
- Business
- Yahoo
EU takes action against AliExpress for DSA compliance issues
The European Commission (EC) has provisionally determined that AliExpress failed to fulfil its duty to evaluate and reduce the risks associated with the spread of unlawful products as required by the Digital Services Act (DSA). The commission is advancing its investigation regarding AliExpress's adherence to the DSA aimed at bolstering online user and consumer protection. The Commission's preliminary conclusions indicate several areas where AliExpress's practices do not align with DSA requirements for Very Large Online Platforms (VLOPs). The platform's risk assessment appears to overlook the limitations of its moderation capabilities, leading to an underestimation of the risk related to the spread of illegal products. AliExpress has reportedly not effectively implemented its sanctions policy against sellers who consistently list illegal items. There are indications of significant shortcomings in AliExpress's proactive content moderation systems, which reduce their effectiveness and leave room for exploitation by unscrupulous sellers. These issues represent a failure to adequately evaluate and address systemic risks associated with the distribution of illegal content, including counterfeit items and products that fail to meet European safety standards. The preliminary findings do not predetermine the final outcome of the investigation. AliExpress now has the opportunity to respond to the EC's concerns. If the EC's initial view is confirmed, it may result in a non-compliance decision, potential fines and an obligation for AliExpress to submit an action plan to remedy the infringement. The formal proceedings to assess AliExpress' adherence to the DSA began on 14 March 2024, focusing on risk management, content moderation, complaint handling, advertising transparency, trader traceability and data access for researchers. EC tech sovereignty, security and democracy executive vice-president Henna Virkkunen stated: 'We have been able to take concrete steps to ensure a high level of safety for EU [European Union] citizens while maintaining a level playing field for platforms and traders in the EU market. This decision serves as an illustration of the commission's expectations when we raise concerns. We welcome AliExpress' commitments towards becoming safer for users, fairer for legitimate traders and a better online platform for all.' The EC has also accepted and made legally binding a series of commitments from AliExpress to address concerns about its transparency on advertising and recommender systems. AliExpress has agreed to a range of commitments to improve the monitoring and detection of illegal products on its platform, such as medicines, food supplements and adult material. These commitments also cover the platform's notice and action mechanism, internal complaint handling system, transparency of advertising and recommender systems, trader traceability and access to public data for researchers. These measures are designed to make information and tools for limiting the spread of illegal content easily accessible. AliExpress has also committed to maintaining an internal monitoring framework, overseen by a dedicated team, to ensure the effectiveness of these commitments and to conduct regular risk assessments. An independent monitoring trustee will report to the EC annually on the implementation of these commitments. "EU takes action against AliExpress for DSA compliance issues" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hans India
7 hours ago
- Business
- Hans India
Telegram CEO Pavel Durov to Leave $17 Billion Fortune to His 106 Children, Inheritance Set for 2055
In a revelation that has sparked global curiosity, Telegram founder and CEO Pavel Durov has shared plans to bequeath his entire fortune—estimated at more than $17 billion—to his 106 biological children. However, they'll have to wait until the year 2055 to receive a cent. In an exclusive interview with the French publication Le Point, Durov, 40, disclosed that he is the biological father of 106 children, six of whom were conceived naturally with three different partners. The remaining were born via sperm donation in a dozen countries, a process he began 15 years ago. 'I want to specify that I make no difference between my children: There are those who were conceived naturally and those who come from my sperm donations,' Durov told Le Point. 'They are all my children, and will all have the same rights!' Based on his current net worth, each child could inherit between $131 million to $161 million, according to Bloomberg and Forbes. But Durov emphasized that the wealth would only be distributed 30 years from the interview date—on June 19, 2055. The reason? He wants them to develop without relying on inherited money. 'I want them to live like normal people, to build themselves up alone, to learn to trust themselves, to be able to create, not to be dependent on a bank account,' Durov explained. This legacy planning reportedly emerged as Durov was preparing his will, driven in part by the legal uncertainties surrounding his work. In August 2024, he was detained by French authorities at Bourget Airport near Paris. He was arriving from Azerbaijan on a private jet and was taken into custody as part of an investigation into Telegram's alleged role in facilitating illegal activities, including child sexual abuse content, drug trade, money laundering, and organized crime. The arrest formed part of a wider inquiry spearheaded by OFMIN, France's agency for combating violence against minors. Authorities extended Durov's detention for up to 96 hours to allow for continued questioning. He must either face formal charges or be released at the end of this period. Despite the severity of the accusations, Durov remains steadfast in his innocence. 'Nothing has ever been proven showing that I am, even for a second, guilty of anything,' he stated. 'Defending freedoms earns you many enemies, including within powerful states.' Telegram has publicly defended its CEO, calling the allegations absurd. In a statement shared on social media, the company said: 'Telegram's CEO Pavel Durov has nothing to hide and travels frequently in Europe. It is absurd to claim that a platform or its owner are responsible for abuse of that platform.' The company affirmed its commitment to legal compliance, noting that it follows the European Union's Digital Services Act and maintains industry-standard content moderation. Since its inception in 2013, Telegram has become one of the world's most-used messaging platforms, lauded for its encryption and data privacy. While this has drawn nearly a billion users, it has also placed the company under scrutiny from law enforcement agencies. But Durov remains unapologetic. 'Just because criminals use our messaging service, among many others, doesn't make those who run it criminals,' he said. As for his 106 children, they'll grow up knowing their future is secure—but only after proving their independence first.
India Today
8 hours ago
- Business
- India Today
Telegram CEO Pavel Durov says he will leave his huge $17 billion fortune to his 106 children
Pavel Durov, the billionaire founder and CEO of Telegram, has announced that he plans to divide his entire fortune – estimated at over $17 billion – among his more than 100 children, most of whom were conceived through sperm donation. In an interview with French magazine Le Point, Durov, 40, said he is the biological father of at least 106 children. Six of them were conceived naturally with three different partners, and the remaining 100-plus were born in 12 countries following anonymous sperm donations he began 15 years want to specify that I make no difference between my children: There are those who were conceived naturally and those who come from my sperm donations,' Durov said. 'They are all my children, and will all have the same rights!'According to Bloomberg Billionaires Index and Forbes, Durov's net worth ranges between $13.9 billion and $17.1 billion. This would translate to an inheritance of roughly $131 million to $161 million per child, based on current estimates. However, there is a catch. The children won't have access to their shares until 30 years after the date of the interview – 19 June 2055. Durov explained that this decision is intended to ensure they grow up independently. 'I want them to live like normal people, to build themselves up alone, to learn to trust themselves, to be able to create, not to be dependent on a bank account,' he revealed that he made these plans while preparing his will, prompted by the risks involved in his work. This appears to be a reference to the legal challenges he is currently facing in France. In August 2024, Durov was arrested by French authorities at Bourget Airport near Paris, after flying in from Azerbaijan on his private jet. He is under investigation for alleged complicity in enabling illegal activities through Telegram, including child sexual abuse material, drug trafficking, money laundering, and organised arrest was part of a broader investigation led by France's OFMIN, an agency focused on tackling violence against minors. French magistrates extended his detention for up to 96 hours to allow further questioning. After this period, he must either be charged or released. Despite the serious allegations, Durov has denied any wrongdoing. 'Nothing has ever been proven showing that I am, even for a second, guilty of anything,' he told Le Point. He also stressed his belief in defending privacy, adding: 'Defending freedoms earns you many enemies, including within powerful states.'Telegram has stood firmly behind its CEO. In a statement posted on its social media accounts, the company said: 'Telegram's CEO Pavel Durov has nothing to hide and travels frequently in Europe. It is absurd to claim that a platform or its owner are responsible for abuse of that platform.'advertisementThe company also clarified that it complies with European Union regulations, including the Digital Services Act, and said its content moderation policies meet industry in 2013, Telegram is known for its strong encryption and refusal to share user data – even with authorities. While the platform has attracted nearly a billion users worldwide, its privacy-first stance has also drawn criticism from law enforcement agencies. Durov, however, remains defiant. 'Just because criminals use our messaging service, among many others, doesn't make those who run it criminals,' he told Le Point.
The Hindu
9 hours ago
- Business
- The Hindu
EU probes Musk's xAI buyout of X: Report
Elon Musk's $33 billion xAI acquisition of X has drawn fresh scrutiny from the European Union, as regulators evaluate potential fines under the Digital Services Act, Bloomberg News reported on Thursday. The European Commission recently circulated fresh questions to X, probing the social media platform's corporate structure following its acquisition by xAI, the report said citing people familiar with the matter. Musk said in March the combination valued "xAI at $80 billion and X at $33 billion". Before its summer recess in August, the regulator could announce a fine on X for alleged infractions under the DSA, though delays are possible, according to the report. Representatives for the European Commission, xAI and X did not immediately respond to Reuters requests for comment. Any firm found in breach of the DSA faces a fine worth up to 6% of its global turnover, and repeat offenders may be banned from operating in Europe altogether. Earlier this month, X highlighted a disclaimer to its blue checkmark in an attempt to head off a possible hefty fine from EU antitrust regulators. The Commission issued preliminary findings under the DSA in July last year that X violated rules on deceptive design, especially by turning the blue checkmark into a paid verification, assigning false credibility to users. X had disagreed with the assessment. The EU had announced a probe into X's alleged breaches of the DSA in December 2023.
