- X’s blue checkmark system was judged a deceptive design, because it misleads users about account authenticity
- The social media platform didn’t create the required clear, public log of ads, as mandated by new EU rules
- X now has 60 working days to present a remediation plan for the blue check issue, and 90 days to address ad transparency and data access shortcomings
The European Commission fined Elon Musk’s social network X €120 million (roughly $140 million) for violations of the Digital Services Act (DSA), which represents the first major enforcement under the regulation.
The case centers on X’s paid blue check verification system, missing transparency around political and commercial ads, and barriers that researchers faced when they tried to study public posts. Under the DSA, regulators want people in Europe to see who paid for content, why they see it, and how platforms handle risks such as disinformation and targeted manipulation.
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How X misled users with Blue Checks
According to the Commission, there were several breaches involved:
- X’s blue checkmark (verification badge) system, where users can pay for verified” status, was judged a deceptive design because it misleads users about account authenticity.
- X didn’t create the required clear, public log of ads, as mandated by new EU rules. Key details like who bought an ad, what it said, and who it was shown to were often missing or hard to find.
- Researchers were denied adequate access to public data, such as metrics and content data. The platform’s interface and terms of service were found to impose unnecessary barriers that hindered legitimate data collection and analysis of public information.
The fine is broken down into three segments: approximately €45 million for checkmark-related deception, €35 million for advertising transparency failures, and €40 million for data access violations.
Under the DSA, penalties could have reached up to 6% of global revenue, meaning this is more of a proportionate penalty rather than a maximal one.
Henna Virkkunen, the European Commission’s Executive Vice President for tech regulation, said the fine was appropriate and not about censorship. She clarified that the purpose is not to censor but to ensure companies are more open and users are safer online.
X has yet to respond
For X, the blue check model represented a way to monetize. The social media platform now has 60 working days to present a remediation plan for the blue check issue, and 90 days to address ad transparency and data access shortcomings. If it fails, higher fines or further sanctions under DSA are possible.
Interestingly, a similar situation happened with TikTok, where the company recently avoided a fine by committing to improve its ad transparency and compliance.
All eyes are now on whether X will follow the EU’s instructions and, if so, how fast. What the company does next will show if it plans to play by the new rules or fight against them.
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Source: https://coinedition.com/eu-fines-musk-x-140m-for-misleading-verified-badges-and-data-denial/
