French Prosecutors Launch Investigation into X Over Alleged Algorithm Manipulation

French prosecutors have launched a criminal investigation into X (formerly Twitter) for allegedly manipulating its algorithms to interfere with foreign elections and fraudulently extracting user data. The probe is a result of allegations that the company broke French law. Competitors in the social media space include Meta Platforms, Alphabet, Pinterest, Reddit, and Snap.

French prosecutors have initiated a criminal investigation into X (formerly Twitter) following allegations that the company manipulated its algorithms to interfere with foreign elections and fraudulently extracted user data. The probe, launched on Wednesday, is based on complaints from lawmakers and an unnamed senior civil servant [3].

The investigation, led by the J3 cybercrime unit, focuses on two key elements: tampering with the operation of an automated data processing system as part of an organized group, and the fraudulent extraction of data from an automated data processing system as part of an organized group [1]. The probe comes amidst growing scrutiny of X across Europe, particularly in France, where the company faces increasing regulatory pressure.

Since Elon Musk's acquisition of X in 2022, the company has faced several regulatory challenges, particularly in Europe. In February, two German NGOs won a ruling from the Berlin Regional Court that required X to provide access to publicly available engagement data to assist researchers in analyzing potential election interference [1]. The European Union is also investigating X for a possible violation of the Digital Service Act, which mandates online platforms to take down illegal content and increase transparency around algorithms [1].

The investigation into X's alleged algorithmic manipulation is not an isolated incident. TikTok, another social media platform, is preparing to launch a standalone app for U.S. users that will operate on a separate algorithm and data system from its global platform [2]. This move is part of ongoing efforts to address data security concerns and potential foreign interference.

As X faces mounting regulatory pressure, investors and financial professionals should closely monitor the outcome of this investigation. The probe could have significant implications for the company's operations, user trust, and regulatory compliance. Musk's plans to transform X into a financial hub with crypto at its core may also be affected by the ongoing scrutiny.

References:
[1] https://www.tradingview.com/news/cointelegraph:866200633094b:0-france-opens-criminal-investigation-into-x-for-alleged-algorithmic-manipulation/
[2] https://www.reuters.com/world/china/tiktok-prepares-us-app-with-its-own-algorithm-user-data-2025-07-09/
[3] https://www.politico.eu/article/france-opens-criminal-probe-into-x-for-algorithm-manipulation/