Bluesky falls foul of EU rules for failing to report user numbers across the entire European Union.
The social network that’s currently surging in popularity due to an exodus of users from rival X is in breach of European Union (EU) regulations. According to a report by the Financial Times, Bluesky has failed to comply with Article 24 of the Digital Services Act (DSA), which requires online platforms serving the EU market to publish regional user numbers twice a year.
Background on the Digital Services Act
The DSA is an online governance framework designed to foster greater transparency and address illicit and toxic content across various online platforms, social networks, marketplaces, and elsewhere. While platforms designated as very large online platforms (VLOPs) face the strictest obligations, certain rules apply to all online service providers.
Article 24 of the DSA
Article 24 requires all online platforms that serve the EU market to report regional user numbers twice a year ‘in a publicly available section of their online interface.’ The social network formerly known as Twitter does exactly this, as does Meta. However, it seems that Bluesky missed the memo.
Consequences of Non-Compliance
Under the DSA, penalties for information reporting failures can reach up to 1% of a platform’s global annual turnover. While Bluesky has recently self-reported passing 20 million users globally, it needs to break out EU users specifically and disclose the information on its website using the EU’s twice-yearly reporting protocol.
What Does This Mean for Bluesky?
Bluesky’s 20 million global total clearly means the platform easily falls below the 45 million monthly users threshold where it could be designated as a VLOP under the DSA. However, since some of the regulation’s transparency disclosures apply to platforms generally, the European Commission (EC) has written to member states asking if ‘they can find any trace of Bluesky’ in their country.
European Commission Statement
Article 24 of the Digital Services Act indeed requires all online platforms in the EU, including BlueSky, to report their user numbers twice a year (in February and August) on their own website,’ European Commission (EC) spokesperson Thomas Regnier said in a statement issued to TechCrunch. ‘This helps the Commission to monitor market developments and potentially designate — or undesignate — platforms as [VLOPs] if they meet the threshold [of] 45 million monthly active users in the EU.’
Bluesky’s Response
A Bluesky spokesperson said that the company is ‘actively working with our lawyers’ to ensure that Bluesky is compliant with the EU’s rules.
What This Means for Users and Investors
This development could have significant implications for users and investors. As a social network, Bluesky must prioritize compliance with regulatory requirements to maintain trust with its user base and avoid potential penalties.
Key Takeaways
- Bluesky is in breach of EU regulations regarding user number reporting.
- The Digital Services Act requires online platforms serving the EU market to publish regional user numbers twice a year.
- Penalties for non-compliance can reach up to 1% of a platform’s global annual turnover.
- Bluesky must break out EU users specifically and disclose the information on its website using the EU’s twice-yearly reporting protocol.
Conclusion
Bluesky’s failure to comply with Article 24 of the DSA is a reminder that regulatory requirements are in place to protect users and ensure transparency across online platforms. As social networks continue to grow and evolve, it is essential for companies like Bluesky to prioritize compliance with EU regulations to maintain trust with their user base and avoid potential penalties.
