The European Commission has levied a €120 million ($140 million) fine against Elon Musk’s social media platform X (formerly Twitter) over breaches of EU regulations. The core issue? The platform’s paid blue checkmark system, which regulators deemed “deceptive” because it allows users to purchase verification without meaningful identity checks. This design makes it harder for users to distinguish authentic accounts from imposters, leaving them exposed to scams and manipulation.
The Digital Services Act and X’s Violations
The fine stems from a two-year investigation into X’s practices under the EU’s Digital Services Act (DSA). The DSA doesn’t mandate identity verification, but it strictly prohibits deceptive design choices. Regulators found that X’s system violates this rule by allowing anyone to buy a “verified” badge, regardless of whether their identity is confirmed.
This isn’t the only violation. The Commission also cited X’s failures to comply with transparency requirements related to its ad repository and restricted access for researchers studying the platform’s data.
Europe vs. Silicon Valley: A Growing Divide
The fine highlights the escalating tension between European regulators and large tech companies. The EU has become increasingly assertive in holding platforms accountable for user safety and transparency, often clashing with Silicon Valley’s approach. This friction is further complicated by criticism from the US administration, which alleges unfair targeting of American businesses.
Elon Musk himself alluded to this, resharing a post claiming Europe is “taxing Americans” for successful US tech companies.
Implications and Reactions
TikTok narrowly avoided a similar fine, having made commitments to improve its advertising transparency. However, X’s failure to address concerns has resulted in significant penalties.
Hanna Virkkunen, the EU’s tech chief, defended the DSA and the decision to fine X, stating that the law is “restoring trust in the online environment.” The Center for Countering Digital Hate, which X previously sued for conducting research on the platform, praised the ruling, emphasizing that transparency is not optional for X if it intends to operate in Europe.
“X has tried to hide how it manipulates the algorithm… Now, European regulators have confirmed that this behavior is unlawful.” – Imran Ahmed, CEO of the Center for Countering Digital Hate
Ultimately, this decision signals that European regulators are serious about enforcing the DSA. The fine demonstrates that platforms operating in the EU must prioritize user protection and transparency, or face substantial financial consequences.
