The UK's media regulator, Ofcom, has initiated a formal investigation into Elon Musk's social media platform X for potential breaches of the Online Safety Act. This move follows significant political and public concern over the platform's Grok AI tool generating indecent images of women and children.
What Powers Does Ofcom Have?
Under the Online Safety Act (OSA), Ofcom wields substantial enforcement powers. The most severe of these are "business disruption measures", which effectively constitute a ban. This could involve ordering internet service providers to block access to X in the UK or compelling payment and advertising services to withdraw.
However, Ofcom has been clear that such a drastic step is an "option of last resort", reserved for "serious cases of ongoing non-compliance". The regulator must follow a legally robust process to avoid a judicial review by X.
The Scope of the Investigation
Ofcom's probe will examine several specific areas where X may have failed its legal duties. The key points under scrutiny include:
- Failing to properly assess the risk of users encountering illegal content.
- Not taking adequate steps to prevent access to material like intimate image abuse and child sexual abuse material.
- Not removing illegal content swiftly enough.
- Insufficient protection of users from privacy law breaches.
- Failing to assess risks to children and lacking effective age verification for pornography.
Fines and Other Potential Outcomes
Aside from a potential ban, Ofcom has other significant penalties at its disposal. The regulator can impose fines of up to £18 million or 10% of a company's global annual revenue, whichever is higher.
Based on advertising revenue estimates of $2.3bn for X last year, a maximum fine could exceed $200 million. Ofcom can also mandate that X takes specific actions to comply with the law and remedy any harms caused.
The investigation's timeline remains uncertain. While typical Ofcom probes can take six to nine months, experts like Professor Lorna Woods from the University of Essex suggest an expedited process is possible given the seriousness of the allegations. Ofcom's swift action indicates it is aware of the intense scrutiny following the flood of AI-generated intimate images on the platform since Christmas.
The regulator will first decide if a breach occurred, issue a provisional finding, and allow X to respond before reaching a final, legally binding decision.
