Telegram EU Probe Could Prove Disastrous; Digital Rules Breach Investigated

Posted: September 4, 2024

Telegram co-founder Pavel Durov is facing increased scrutiny as European Union regulators launch an investigation into whether his messaging app, Telegram, has violated digital rules. The probe focuses on suspicions that Telegram misreported its user base to avoid stricter regulations. The EU’s Digital Services Act (DSA), enacted to regulate Big Tech companies like Meta, Google, and TikTok, imposes more stringent requirements on platforms with more than 45 million users in the EU. These rules include bans on targeted ads, measures to prevent misinformation, and obligations to share data with the European Commission.

Telegram, which has nearly 1 billion users worldwide, reported in February that it had 41 million users in the EU, just below the 45 million thresholds. However, the company failed to provide an updated figure, as required by the DSA. EU officials suspect that Telegram may have intentionally underreported its numbers to avoid the additional regulations that would apply if it crossed the 45 million mark. Thomas Regnier, a European Commission spokesperson, stated that the Commission has its methods for verifying the accuracy of user data and can designate platforms as “very large” based on its findings.

This investigation comes at a time when Durov is already entangled in legal troubles in France. He was detained at Le Bourget airport near Paris as part of an investigation into criminal activities allegedly facilitated by Telegram, including drug trafficking and the distribution of child sexual abuse material. After four days of questioning, Durov was released on $5.6 million bail but was ordered to remain in France and report to a police station twice a week. The French authorities have filed preliminary charges against him, including complicity in managing an online platform that allows illicit transactions by an organized group—a charge that carries a potential sentence of up to 10 years in prison and a hefty fine.

Durov’s legal team has dismissed the charges as absurd, arguing that the platform’s activities should not implicate Durov directly or indirectly. The French prosecutors have indicated that Durov is currently the only person implicated in this case, though they have not ruled out the possibility of other individuals being investigated.

The unfolding legal challenges and regulatory scrutiny signal a turbulent period for Durov and his platform. The EU investigation could lead to significant consequences for Telegram if the company is found to have breached digital rules.