Elon Musk's X penalized $140 million for breaching EU transparency rules

The European Union has imposed a 120 million ($140 million) penalty on Elon Musk's social media platform X for failing to comply with internet transparency regulations. The European Commission stated that X violated the Digital Services Act (DSA), which aims to protect users in the EU from online misconduct.

This marks the first enforcement action under the DSA since its introduction in 2022. According to the Commission, X misused its 'blue checkmark' verification system, allowing anyone who pays for verification to appear authentic. This, the EU said, can mislead users and increase the risk of scams and manipulative activity.

Additionally, the EU criticized Xs advertisement database, stating it does not meet accessibility standards required by the DSA. Platforms in the EU must provide a publicly accessible record of all digital ads, including information about sponsors and target audiences, to help researchers detect misleading campaigns.

X has 60 days to respond with measures addressing the Commissions concerns.

Federal Communications Commission Chairman Brendan Carr criticized the fine, suggesting it unfairly targets U.S. tech companies. X has not provided an immediate comment on the penalty.

The DSA obliges platforms to remove illegal content and meet other compliance requirements, with significant fines for violations. The legislation has been controversial among U.S. tech firms, who argue it infringes on free speech rights.

Author: Ethan Caldwell