Musk's Beloved X Isn't Doing Too Good

Elon Musk's X is struggling. Once known as Twitter, the platform has seen a significant drop in user growth. According to a recent Financial Times report, X only managed to gain a meager 1.6% increase in daily active users in the second quarter of 2024, reaching about 251 million users. This starkly contrasts the double-digit growth Twitter enjoyed before Musk's takeover in October 2022.

The problem doesn't end there. The European Union is now scrutinizing Musk's controversial paid blue-check system. The EU claims that allowing any account to pay for verification deceives users and can be exploited by malicious actors. This practice, the EU says, breaches the Digital Services Act (DSA). European Commission officials warned that unless X makes changes, the platform could face fines of up to 6% of its global annual turnover.

Before Musk's acquisition, Twitter’s blue checks were a mark of authenticity. They verified the identities of influential accounts like the US Centers for Disease Control and Prevention and celebrities like Kim Kardashian. This system helped users identify trustworthy sources and limited scammers. But Musk criticized it as elitist and introduced a new model where anyone could buy a blue tick for $8 per month.

This democratized verification system has been controversial. High-profile figures like NBA star LeBron James fell victim to impersonation by accounts with paid blue checks. Musk responded by introducing a more complicated color-coded system: gold checks for verified companies, gray checks for governments, and blue checks for "influential" users, restored for free in April 2024.

Despite these changes, the EU remains unconvinced. Officials argue that X's current verification system doesn't align with industry practices and fails to comply with advertising transparency rules. Additionally, they claim X's high fees for API access hinder researchers and fail to provide adequate public data access.

The EU's reprimand is part of a broader effort to hold big tech accountable. In recent months, similar actions have been taken against Apple, Microsoft, and Meta.

Musk's vision of a “democratized” social media platform faces significant challenges. User growth has stagnated, and regulatory pressures are mounting. If X cannot resolve these issues, the platform risks losing credibility and facing hefty fines.

I started using Twitter in 2009. As an aspiring writer, I instantly fell in love with the short-form content platform and enjoyed how different it was from its competitors like Instagram and Facebook. Yet, now, in Musk’s rule, the platform has become my least favorite place to go. Now, it’s become a place for Musk’s cult to play and follow pretty much anything the man says or does.

I don’t see such a bright future for the platform… who will be its predecessor?

In other news:

Thousands of Creators’ Youtube Videos were Used to Train AI Without Their Consent

YouTube creators are outraged after discovering their content was used to train AI models without their permission. Companies like Apple, Nvidia, and Anthropic extracted subtitles from over 173,000 videos to develop their AI, violating YouTube's terms.

Creators argue that their work, which supports their livelihoods, has been exploited without compensation. This only highlights the urgent need for regulators to enforce stricter guidelines to protect creators and ensure AI companies verify their data sources ethically. This case is likely the first of many as the debate over AI training data transparency and creator rights intensifies.

Thought of the day:

What are everyone’s thoughts on Substack podcasts? I recently tuned into Sarah Fay | Writers at Work podcast episode, interviewing Elle Griffin, and loved it! I think Substack is on to something by adding these services, and I am not on the hunt for more podcasts on the platform. Also, I may take the leap and start one myself…

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