The European Commission has imposed a significant fine of €120 million (approximately $140 million) on Elon Musk’s social media platform, X, for violating transparency regulations set forth by the Digital Services Act (DSA). This decision comes after an investigation launched last year, focusing on X’s verification system for blue checkmarks and other potential DSA infractions.
Key findings from the Commission’s ruling indicate that the blue checkmark system has become problematic; what once served as a means of identity verification on Twitter is now accessible for purchase by anyone, raising concerns about user safety and the authenticity of accounts. The EU argued that this shift could expose users to scams and impersonation fraud, as distinguishing genuine accounts has become increasingly difficult.
In addition to issues surrounding account verification, the Commission criticized X’s advertising repository for its "deceptive design" and barriers that inhibit users and researchers from identifying the sources of online advertisements, thereby complicating efforts to detect scams and fraudulent campaigns. Furthermore, X’s compliance with DSA requirements to provide accessible public data for research purposes has reportedly been inadequate, which undermines efforts to investigate systemic risks within the EU.
As part of the ruling, X is given 60 working days to respond to the Commission’s non-compliance notice regarding blue checkmarks, and 90 days to submit a comprehensive action plan addressing the identified shortcomings in its advertising and public data practices. Non-compliance with these requirements could lead to additional fines.
- Key Points:
- Fine of €120 million imposed on X for DSA violations.
- Investigation centered on the blue checkmark verification system.
- Concerns raised about user safety and authenticity of accounts.
- Criticism of X’s advertising repository design and access restrictions.
- Deadline to respond and present an action plan outlined by the EU.
