European Commission penalizes X with $140 million for blue checkmark violation and lack of transparency

Dec. 5 The European Commission has imposed a $140 million penalty on X due to misleading verification practices, opaque advertising methods, and restricted access to data for researchers. The Commission stated that these actions breach the European Unions Digital Services Act (DSA), marking the first enforcement of this legislation enacted in 2022 to safeguard users online.

"Misleading users with verification marks, concealing advertising details, and denying researchers access to data have no place on online platforms in the EU. With this initial DSA non-compliance ruling, X is being held accountable for undermining user rights," said Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security, and Democracy at the Commission.

Prior to the announcement, Vice President JD Vance shared his perspective on X, criticizing the fine as an attack on free speech and suggesting that the EU should support open expression rather than penalizing American companies.

Compared to previous fines, this penalty is relatively modest. Earlier this year, Apple faced a $583 million fine, while Meta received $233 million for antitrust violations.

Xs blue checkmark, historically used to confirm the identity of notable accounts like celebrities and companies, has changed since Elon Musk acquired the platform in October 2022. Musk introduced a paid system for verification, allowing any user to obtain the mark without meaningful identity checks.

"Allowing anyone to purchase 'verified' status without proper verification undermines users ability to assess account authenticity, increasing susceptibility to scams and fraud," the Commission noted. Preliminary findings of the investigation were announced in July 2024, emphasizing that while verification is not mandatory under the DSA, falsely presenting accounts as verified is prohibited.

The EU also criticized Xs advertising repository for lacking transparency and accessibility, which complicates the detection of fraudulent ads. The platform reportedly uses design features and procedural delays that obstruct the purpose of ad repositories and fails to provide essential details such as ad content, topics, and funding sources.

Furthermore, X restricts researchers from accessing public data, creating barriers that hinder the study of systemic risks within the European Union.

X has 60 days to present a solution for the verification issue and 90 days to submit an action plan addressing the other violations. Elon Musk has not publicly responded to the fine or outlined how the company intends to comply.

Author: Maya Henderson