EU imposes €120M fine on X for deceptive blue check verification system

The European Commission has levied its inaugural fine under the Digital Services Act (DSA), targeting Elon Musks social media platform, X, formerly known as Twitter. The regulator criticized X for allowing users to purchase a blue checkmark, a symbol previously reserved for verified public figures, journalists, and politicians.

Describing the system as misleading, the European Union imposed a 120 million fine on X for failing to meet transparency obligations mandated by the DSA.

The Commission highlighted additional violations, including Xs opaque advertisement repository and the platforms restriction on researchers access to public data. Under Musks ownership since 2023, the blue checkmark now simply reflects a subscription to X Premium and compliance with basic profile requirements, rather than confirming a users identity.

Xs practice of using blue checkmarks to indicate verification misleads users, the Commission stated. This breaches the DSAs requirement to prevent deceptive design on online platforms. Any user can pay to obtain verified status without meaningful identity verification, complicating the publics ability to assess account authenticity.

The European regulator warned that this setup increases the risk of scams, impersonation, and manipulation on the platform. Additionally, Xs ad repository was found non-compliant with DSA transparency and accessibility rules, as it fails to provide essential details such as ad content, topics, and sponsors, and delays processing access requests.

Access to public data was also flagged. The DSA requires platforms to allow researchers to examine public data to identify systemic risks. The EC determined that X imposes unnecessary barriers, hindering independent research on potential threats.

This ruling follows a two-year investigation into Xs practices regarding risk management, content moderation, advertising transparency, and research data access. The Commission emphasized that misleading verification, limited ad transparency, and restricted research access are unacceptable in the EU digital space.

X now has 60 days to respond with a plan to resolve the blue checkmark issue and 90 days to address the shortcomings related to advertising and public data access. Breaches under the DSA can incur substantial fines, potentially up to 6% of a companys global annual revenue.

Author: Jackson Miller