Bluesky, the decentralized social platform born as a Twitter alternative, is causing a stir in Europe, and not just because of its rapid growth. The European Union has flagged the platform for failing to comply with transparency rules outlined in the Digital Services Act (DSA). Under these regulations, any online platform operating within the EU must disclose its user numbers within the region and identify its legal base. Bluesky has reportedly skipped this step, drawing attention from European regulators.

The DSA is a sweeping legal framework designed to hold platforms accountable for user-generated content, promote transparency, and mitigate online harm. Larger platforms—those with over 45 million EU users, like X (formerly Twitter), Meta’s Threads, and TikTok—face additional scrutiny as “very large online platforms” (VLOPs). However, smaller platforms like Bluesky are not yet under these stringent obligations, as their user base falls below the threshold. As of now, Bluesky has an estimated 22.5 million global users and hasn’t officially disclosed its EU-specific numbers. The company’s non-compliance stems, at least partly, from its lack of a formal presence within the EU.

While the European Commission has noted Bluesky’s lapses, enforcement is limited because Bluesky doesn’t yet meet the criteria for a VLOP. Instead of direct actions against the platform, the Commission is asking EU member states to track Bluesky’s regional footprint, such as office locations. Interestingly, the Commission has yet to contact Bluesky directly, perhaps reflecting its focus on higher-impact platforms or the relative novelty of Bluesky’s rise.

Bluesky’s rise has been fast but controlled. Following heightened interest during U.S. political events, the platform has grown steadily. If its trajectory continues, it could soon cross the 45-million-user mark globally, drawing more significant regulatory attention from Europe. At that point, Bluesky would need to step up compliance or face penalties. The EU’s enforcement mechanisms under the DSA are robust, and platforms that flout the rules could incur hefty fines—up to 6% of their global turnover.

For now, Bluesky enjoys a bit of regulatory breathing room, but its decentralized ethos and expanding influence may clash with the EU’s tight regulatory frameworks in the future. Whether it can navigate these challenges while staying true to its open-web principles remains an open question.