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11 months agoContext:
Elon Musk’s X has instructed staff not to suspend users that post explicitly racist, sexist and homophobic content, or who send sexual material to another person, as part of a new policy that has radically stripped back the company’s moderation of abusive material.
X is so fucked.
https://en.wikipedia.org/wiki/Digital_Services_Act says that “Companies that do not comply with the new obligations risk fines of up to 6% on their annual turnover [i.e. revenue before expenses] in the European Union.”
According to https://www.businessofapps.com/data/twitter-statistics/, twitters revenue was $4 billion in 2022. Let’s assume it’s $2 billion now. Also on that page, it shows half the revenue comes from USA, half ‘rest of world’, let’s assume that means EU. So $1bn. 6% of that is $60 million. Per year.
Not exactly a killing blow, I guess. But paying that money has to come out of profits so this makes turning a profit significantly harder.