EU fines social media X €120 million

The European Union has levied a 120 million ($140 million) fine on social media service X for violations of transparency requirements. The European Commission claims that X misrepresented the verification of user accounts with blue ticks, restricted access to data for researchers, and failed to provide clear documentation for advertisements.

The commission emphasized that the fine aligns with the severity of the violations when announcing the decision on Friday.

Deceptive blue checkmarks, concealing advertising information, and blocking researchers have no place in the EU online environment, said European Commission Vice President Henna Virkkunen.

X retains the right to challenge the decision in court, potentially taking the matter to the European Court of Justice (ECJ). The fine is issued under the EUs Digital Services Act (DSA) and may add tension to relations with the United States. US Vice President JD Vance criticized the move on X, calling on the EU to support free speech instead of penalizing American companies. Former US President Donald Trump has also previously described European digital regulations as anti-competitive.

Verification Controversy

Before Elon Musks acquisition, X displayed white checkmarks on blue badges next to the accounts of celebrities, politicians, and public figures after verification. Following the 2022 takeover, Musk implemented a system where all paying subscribers received the same blue tick, generating concerns over impersonation and fake accounts posing as well-known entities. The platform now requires a profile photo, username, and absence of fraudulent behavior for verification. Gold ticks are issued to companies, and silver ones to government authorities.

The company may face additional penalties in separate EU investigations concerning illegal content and disinformation, which are ongoing.

First Fine Under the Digital Services Act

This is the first penalty imposed under the EUs Digital Services Act, which took effect in 2024. The DSA aims to curb risky practices by tech giants. Online platforms must now respond more effectively to user complaints, remove illegal content promptly, and better protect minors. Companies violating these rules may face fines of up to 6% of global annual revenue, along with daily fines until compliance is achieved. Critics argue that enforcement has not yet been aggressive enough.

Other EU Digital Proceedings

Separately, the EU has discontinued proceedings against TikTok regarding non-transparent advertising. TikTok, owned by Beijing-based ByteDance, committed to improving transparency measures. Ongoing investigations continue regarding TikToks potential impact on children and democratic processes.

Author: Natalie Monroe