LUXEMBOURG—WebGroup Czech Republic, the parent company of XVideos, lost its appeal to the European Union Court of Justice challenging the requirement under the Digital Services Act to disclose the natural names and identification data of its advertisers, according to a court order released March 6.
Counsel representing WebGroup contested the European Commission's promulgation of the Digital Services Act's (DSA) requirements on "very large online platforms" (VLOPs). VLOPs are required under the act to publish a publicly available repository of its advertisers that operate through the XVideos ecosystem and network of websites.
AVN has reported on the impact of the DSA on adult entertainment platforms that transcend borders due to their presence in the digital space. Aylo, the parent company of Pornhub, additionally filed an appeal with the Court of Justice in the summer of 2024 on similar conditions.
MLex reports that lawyers representing the XVideos parent company argued to the court that forcing the disclosure of advertising databases is "unlawful in that it breaches the applicant’s and its advertisers’ right to confidentiality."
"By the decision at issue, the European Commission designated XVideos as a very large online platform," the court's opinion reads.
"[The] President of the General Court ... held ... that the interests defended by the EU legislature prevailed, in the present case, over the interests of WebGroup Czech Republic and of third parties, with the result that the weighing up of interests [leaned in favor] of dismissing the application for interim measures."
In clearer language, the court found that WebGroup Czech Republic failed to justify an exemption for the confidentiality of advertisers. One argument made by the company is that advertisers, some of whom are likely to be individual content creators who monetize and promote material through XVideos, could be doxxed.
Such a ruling against the parent company of one of the largest adult entertainment platforms in the world comes as platforms are reporting lower user traffic volumes.
As AVN reported, three large adult platforms were classified as VLOPs in December 2023, namely Pornhub, Stripchat and XVideos. XNXX was added to that list months later. All of the first three sued.
DSA reporting by these platforms in recent months has shown lower traffic volumes that could lead to potential reclassification by the European Commission.
Thomas Regnier, a spokesperson for the European Commission, explained in a press statement to the English version of Euractiv, "If a VLOP falls under the threshold, un-designation is indeed possible, and then the general DSA obligations would apply to such a platform.''
