After X (formerly Twitter) already failed on the regulatory front last year, with insufficient transparency about advertisers, flawed verification processes and insufficient oversight of harmful content, the platform now appears to be in trouble again. This time because of possible violations of the Digital Services Act (DSA).
The DSA imposes strict obligations on Internet companies to actively combat illegal content, disinformation and hate speech and to report on it transparently. Companies must demonstrate that they have taken effective measures to protect the integrity of their platform.
A potential billion-dollar fine for X sends an important message to all companies worldwide: compliance does not stop at national borders. The DSA applies to all companies operating within the European market, regardless of their location. This makes it essential to always be keen on international legislation, especially in sectors where data, content and customer information are central.
Financial institutions today are no longer just financial institutions. As soon as banks, insurers or fintechs deploy digital platforms, they face new rules of the game. As a company, you will quickly be affected, especially if you are active in online marketing or digital services - even if that is not your main activity. The DSA does not look at sector, but at behavior: those who are active online must take responsibility.
For organizations, this means that compliance can no longer be merely reactive, but must be structurally integrated into all business processes. Consider:
- Robust monitoring and reporting systems for content management
- Transparency towards users and regulators
- Proactive risk analyses and the ability to quickly adjust policy in response to changing regulations
As a financial institution, how do you comply with the DSA? The news surrounding X's possible record fine underscores how stringent regulators are on non-compliance and how much risk companies face if they do not treat compliance as a top priority. In an international and digital economy, investing in compliance is necessary not only to avoid sanctions, but also to ensure organizational continuity, reputation and growth.
