X Receives a Penalty

The European Union has imposed a $140 million fine on X, marking the first penalty issued under the EU's Digital Services Act (DSA). The violations cited include the platform's misleading design that allows users to misrepresent their identities, prohibited advertising practices, and refusal to provide public data access to researchers.

"Tech companies must maintain transparent advertiser listings to prevent scams, fake ads, and coordinated campaigns, especially during elections," explained EU authorities.

Henna Virkkunen, Executive Vice President for Tech Sovereignty, Security, and Democracy at the European Commission, stated, "Misleading users with verification badges, concealing ad information, and restricting researcher access have no place online in the EU. X is being held accountable for infringing on user rights."

Other tech companies have faced similar scrutiny: Meta and TikTok were previously penalized for transparency violations under the DSA, while Chinese marketplace Temu was accused of failing to prevent the sale of illegal products.

Author: Lucas Grant