EU imposes $140 million fine on Elon Musk's X for 'lack of transparency'

The European Union has levied a $140 million fine on Elon Musks social media platform, X, for breaching transparency rules under the Digital Services Act (DSA), a framework aimed at ensuring accountability for online platforms. The announcement comes after a two-year investigation into Xs practices.

Authorities cited several violations, including misleading users with its blue checkmark verification system, insufficient transparency regarding advertising data, and failure to provide researchers access to public data crucial for studying disinformation and other societal impacts. The European Commission warned that continued non-compliance could result in additional penalties.

Henna Virkkunen, the EUs executive vice president for tech sovereignty, security, and democracy, stated, Deceiving users with blue checkmarks, hiding information on ads, and blocking researchers have no place in the EU. This decision holds X accountable for undermining user rights and avoiding responsibility.

The fine comes amid broader tensions between the EU and U.S. policymakers over regulating Big Tech companies. The ruling follows similar scrutiny of platforms like Meta, which is currently facing an EU antitrust probe related to AI chatbots on WhatsApp.

Despite suggestions that regulatory leniency could be linked to trade incentives, the European Commissions enforcement shows that transparency and compliance remain central priorities for the bloc. X has not publicly commented on the fine.

Author: Lucas Grant