EU officials believe Telegram lied about user numbers to skirt regulation

Not only is CEO Pavel Durov , the company he founded could be in hot water with the European Union as well. EU officials are looking into whether the platform lied about its user numbers to avoid being regulated under the Digital Services Act ().

The Joint Research Centre — a department of the European Commission, the EU’s executive branch — is conducting a technical investigation in an attempt to determine Telegram’s true user numbers in the bloc. Officials are also discussing the matter with Telegram, according to the . “We have a way through our own systems and calculations to determine how accurate the user data is,” said Thomas Regnier, the EC’s spokesperson for digital issues, said.

Earlier this year, Telegram claimed to have 41 million users in the bloc. While it was supposed to provide an updated figure this month, it said only that it had “significantly fewer than 45 million average monthly active recipients in the EU.” Officials claim Telegram’s failure to disclose the actual number is itself a breach of the DSA, while they believe that the investigation will reveal that more than 45 million residents are using it.

That figure is significant because services that have more than 45 million users (10 percent of the EU’s population) there are designated as “very large online platforms.” Those are subject to stricter rules under the DSA, violations of which can lead to a fine of up to six percent of a company’s annual revenue. Platforms with the designation have to meet higher compliance and content moderation standards, and share data with the EC. Third-party auditing is also a factor.

Telegram is said to be on the cusp of cracking 1 billion users in total. Other than China, the user base is “roughly proportionate to the population of each market [or] continent,” Durov told the FT .

On Wednesday, French prosecutors amid an ongoing investigation. , he has been accused of “complicity in distributing child pornography, illegal drugs and hacking software” and “refusing to cooperate with investigations into illegal activity” on Telegram, which is an encrypted messaging service.

Durov, who was , was released from custody after posting bail of €5 million. The Telegram CEO, who obtained French citizenship a few years ago, is required to stay in France and check in at a police station twice weekly until the investigation is concluded.