Musk is about to face a $200 million EU fine as social media platform X comes under scrutiny for alleged DSA violations

The European Union has accused the social media platform X, owned by Elon Musk, of breaching the Digital Services Act (DSA) on three counts.

The documents, released on July 12, indicate that X could face fines of up to 6% of its global annual turnover. The alleged violations pertain to "dark patterns," advertising transparency, and data access for researchers. However, EU Internal Market Commissioner Thierry Breton clarified that the findings are not final and that X retains the right to defend itself.

Whistleblowers Challenge OpenAI’s NDA Policies

SEC Complaint

Whistleblowers have approached the United States Securities and Exchange Commission, claiming that OpenAI's non-disclosure agreements (NDAs) are illegal.

Filed in June, the complaint suggests that OpenAI may have prevented former employees from discussing safety and other issues with federal agents.

Senator Chuck Grassley, whose office revealed the documents, supports the whistleblowers and stresses the need for OpenAI to amend its NDA policies to protect whistleblower rights.

BitMEX Admits to Bank Secrecy Act Violation

AML Failures

Crypto exchange BitMEX has pleaded guilty to violating the Bank Secrecy Act, as confirmed by the United States Department of Justice.

The exchange admitted to willfully neglecting to establish, implement, and maintain an Anti-Money Laundering (AML) program.

US Attorney Damian Williams stated that BitMEX ignored AML requirements, failing to implement Know Your Customer standards.

Supreme Court Ruling Alters Landscape for US Crypto Firms

Impact of Loper Bright v. Raimondo

The United States Supreme Court’s decision in Loper Bright v. Raimondo has overturned the precedent set by Chevron U.S.A., Inc. vs. Natural Resources Defense Council, which required courts to defer to federal agencies when interpreting ambiguous statutes.

This ruling, effective from June 28, 2024, is expected to have a significant impact.

Joshua Simmons, a partner at Wiley Rein, explained that the ruling provides companies with a more level playing field when challenging federal agencies.

Summary

The EU’s accusations against X highlight the ongoing struggle for compliance in the digital services sector. OpenAI’s alleged NDA violations underscore the need for transparency, while BitMEX’s admission of guilt reflects broader regulatory challenges in the crypto industry.

The Supreme Court ruling represents a pivotal shift, offering companies new avenues to challenge federal oversight.