Not only is Telegram CEO Pavel Durov facing criminal charges in France, the company he founded could be in hot water with the European Union as well. EU officials are looking into whether the platform lied about its user numbers to avoid being regulated under the Digital Services Act (DSA).

The Joint Research Centre — a department of the European Commission, the EU’s executive branch — is conducting a technical investigation in an attempt to determine Telegram’s true user numbers in the bloc. Officials are also discussing the matter with Telegram, according to the Financial Times. “We have a way through our own systems and calculations to determine how accurate the user data is,” said Thomas Regnier, the EC’s spokesperson for digital issues, said.

Earlier this year, Telegram claimed to have 41 million users in the bloc. While it was supposed to provide an updated figure this month, it said only that it had “significantly fewer than 45 million average monthly active recipients in the EU.” Officials claim Telegram’s failure to disclose the actual number is itself a breach of the DSA, while they believe that the investigation will reveal that more than 45 million residents are using it.

That figure is significant because services that have more than 45 million users (10 percent of the EU’s population) there are designated as “very large online platforms.” Those are subject to stricter rules under the DSA, violations of which can lead to a fine of up to six percent of a company’s annual revenue. Platforms with the designation have to meet higher compliance and content moderation standards, and share data with the EC. Third-party auditing is also a factor.

Telegram is said to be on the cusp of cracking 1 billion users in total. Other than China, the user base is “roughly proportionate to the population of each market [or] continent,” Durov told the FT earlier this year.

On Wednesday, French prosecutors formally charged Durov amid an ongoing investigation. Among other things, he has been accused of “complicity in distributing child pornography, illegal drugs and hacking software” and “refusing to cooperate with investigations into illegal activity” on Telegram, which is an encrypted messaging service.

Durov, who was arrested at an airport near Paris over the weekend, was released from custody after posting bail of €5 million. The Telegram CEO, who obtained French citizenship a few years ago, is required to stay in France and check in at a police station twice weekly until the investigation is concluded. 

This article originally appeared on Engadget at https://www.engadget.com/big-tech/eu-officials-believe-telegram-lied-about-user-numbers-to-skirt-regulation-165538148.html?src=rss

Content merged from August 29, 2024 4:55 pm:

Not only is Telegram CEO Pavel Durov facing criminal charges in France, the company he founded could be in hot water with the European Union as well. EU officials are looking into whether the platform lied about its user numbers to avoid being regulated under the Digital Services Act (DSA).

The Joint Research Centre — a department of the European Commission, the EU’s executive branch — is conducting a technical investigation in an attempt to determine Telegram’s true user numbers in the bloc. Officials are also discussing the matter with Telegram, according to the Financial Times. “We have a way through our own systems and calculations to determine how accurate the user data is,” said Thomas Regnier, the EC’s spokesperson for digital issues, said.

Earlier this year, Telegram claimed to have 41 million users in the bloc. While it was supposed to provide an updated figure this month, it said only that it had “significantly fewer than 45 million average monthly active recipients in the EU.” Officials claim Telegram’s failure to disclose the actual number is itself a breach of the DSA, while they believe that the investigation will reveal that more than 45 million residents are using it.

That figure is significant because services that have more than 45 million users (10 percent of the EU’s population) there are designated as “very large online platforms.” Those are subject to stricter rules under the DSA, violations of which can lead to a fine of up to six percent of a company’s annual revenue. Platforms with the designation have to meet higher compliance and content moderation standards, and share data with the EC. Third-party auditing is also a factor.

Telegram is said to be on the cusp of cracking 1 billion users in total. Other than China, the user base is “roughly proportionate to the population of each market [or] continent,” Durov told the FT earlier this year.

On Wednesday, French prosecutors formally charged Durov amid an ongoing investigation. Among other things, he has been accused of “complicity in distributing child pornography, illegal drugs and hacking software” and “refusing to cooperate with investigations into illegal activity” on Telegram, which is an encrypted messaging service.

Durov, who was arrested at an airport near Paris over the weekend, was released from custody after posting bail of €5 million. The Telegram CEO, who obtained French citizenship a few years ago, is required to stay in France and check in at a police station twice weekly until the investigation is concluded. 

This article originally appeared on Engadget at https://www.engadget.com/big-tech/eu-officials-believe-telegram-lied-about-user-numbers-to-skirt-regulation-165538148.html?src=rss