Bluesky, the social network that has been gaining popularity at the expense of rival X, is currently in breach of European Union (EU) regulations that require online platforms to regularly publish regional user numbers. This oversight could result in significant penalties, highlighting the importance of compliance with the EU's Digital Services Act (DSA).

The DSA, which came into full effect in February, is an online governance framework designed to promote transparency and address illicit and toxic content across various online platforms, social networks, marketplaces, and elsewhere. While very large online platforms (VLOPs) face the strictest obligations, certain rules apply to all online service providers. Article 24 of the DSA specifically requires all online platforms serving the EU market to report regional user numbers twice a year "in a publicly available section of their online interface."

Notably, Bluesky's rival platforms, including the social network formerly known as Twitter and Meta, comply with this regulation by publishing their regional user numbers. However, Bluesky has failed to do so, despite recently self-reporting a global user base of 20 million. To comply with the DSA, Bluesky needs to break out EU users specifically and disclose this information on its website using the EU's twice-yearly reporting protocol.

The potential penalties for Bluesky's non-compliance are substantial, with fines reaching up to 1% of their global annual turnover. The European Commission (EC) has taken notice of Bluesky's breach, with a spokesperson stating that Article 24 of the DSA indeed requires all online platforms in the EU, including Bluesky, to report their user numbers twice a year. The EC has written to Member States, asking if they can find any trace of Bluesky in their country, such as an office that it can contact to request the relevant information.

Currently, Bluesky's 20 million global users place it below the 45 million monthly users threshold, which would designate it as a VLOP under the DSA. However, the EC's request for information highlights the importance of transparency and compliance with EU regulations. As the social network continues to grow in popularity, it must prioritize adherence to these rules to avoid potential penalties and maintain user trust.

TechCrunch has reached out to Bluesky for comment, and we will update this report if we hear back. In the meantime, Bluesky's breach serves as a reminder to all online platforms operating in the EU to prioritize compliance with the DSA and its regulations.

The implications of this breach extend beyond Bluesky, as it highlights the importance of regulatory compliance in the tech industry. As the EU continues to shape the online governance landscape, companies must remain vigilant and proactive in adhering to these rules to avoid reputational damage and financial penalties. In the rapidly evolving world of social media, staying ahead of regulatory requirements is crucial for long-term success.