Elon Musk's X fined €120m for 'misleading' blue checkmarks

Elon Musks social media platform X has been slapped with a 120 million (105 million) fine by the European Union due to its handling of blue verification badges. The European Commission stated that by allowing users to purchase a blue check mark, the platform "misleads users" since it does not effectively confirm the identities behind the accounts.

"This misleading practice exposes individuals to scams, including impersonation and other malicious activities," the Commission explained.

EU regulators also highlighted that X has been failing to offer clarity regarding its advertising and has restricted researchers' access to public platform data. "The fine reflects the seriousness of these violations, the number of EU users affected, and how long they persisted," the statement added.

Henna Virkkunen, the Commissions executive vice-president for tech sovereignty, emphasized, "Misleading users with verification badges, hiding ad information, and denying researchers access have no place online in the EU."

X is now required to inform the Commission of how it intends to align its practices with EU law or face recurring penalties.

This case marks the EUs first enforcement under the Digital Services Act (DSA), which regulates online platform behavior regarding content, data, and advertising. The Digital Markets Act complements this by outlining rules for fair competition and consumer protection.

US officials have voiced concern over stricter EU regulations. Vice President JD Vance criticized the EU, suggesting the platform is being penalized "for not engaging in censorship" and arguing that Europe should "support free speech instead of targeting American companies."

Analysis: EU Fine Highlights Regulatory Pressure on X

The European Union's €120 million fine against Elon Musk's social media platform X underscores the growing scrutiny of online platforms under the Digital Services Act. The penalty specifically targets the sale of blue verification badges, which the Commission found misleading for users and prone to facilitating scams and impersonation.

Beyond verification, the EU criticized X for obscuring advertising information and limiting researchers' access to public data. These issues signal broader concerns about transparency and accountability for platforms operating in Europe.

The case also demonstrates the EU's willingness to enforce new digital regulations. X must now provide a compliance plan or face further penalties, marking a significant precedent under the Digital Services Act. This may influence how other social media companies handle verification and data practices in the EU.

From a regulatory perspective, the fine emphasizes the EU's commitment to user protection and platform responsibility, even as U.S. officials voice objections regarding perceived constraints on free speech.

Sources:

• Elon Musk's X fined €120m over 'deceptive' blue ticks