EU imposes $140M fine on Musk's X for blue checkmark and transparency issues

The European Union has imposed a $140 million penalty on Elon Musks social media platform X for breaching the Digital Services Act (DSA), marking the first enforcement action under the blocs new tech regulation.

The European Commission accused X of misleading users with its blue checkmark system and failing to maintain a transparent advertising database, as well as restricting researchers access to public data. According to the commission, Xs verification system, which allows anyone to pay for a blue checkmark, makes it challenging for users to verify account authenticity, violating the DSAs rules against deceptive design.

Additionally, the commission identified flaws in Xs advertising repository that reduced its effectiveness and omitted essential information about the ads displayed on the platform. Researchers are also blocked from independently accessing data, further contravening the DSA.

Henna Virkkunen, the EU executive vice-president for tech sovereignty, security, and democracy, stated, Misleading users with paid verification marks, hiding ad details, and restricting researchers access have no place online within the EU. The DSA ensures user protection, allows research into potential risks, and restores trust in digital platforms. With this first non-compliance ruling, X is held accountable for violating users rights.

The EU began its investigation into X in December 2023, reviewing the platforms design, advertising practices, and management of illegal content and information manipulation. The probe into content and manipulation practices is still ongoing.

Author: Riley Thompson