EU fined X social network for €120 million

The European Union has fined Elon Musk’s X platform €120 million for the “misleading design” of the blue checkmarks that mark verified accounts. This is the first time that the social network, formerly known as Twitter, has been fined under the Digital Services Act (DSA). The Verge reports.

Previously, the European Commission accused the platform of violating transparency requirements, limiting researchers’ access to the service’s data, and misleading users with a paid account verification system. After buying Twitter, Musk made the blue checkmarks a paid one, which allowed anyone who wanted to get verified. As a result, finding real, official accounts became much more difficult.

In a new report, the European Commission emphasizes that the DSA does not oblige platforms to check and confirm users, but at the same time it explicitly prohibits creating a false impression that accounts have been verified.

Henna Virkunen, the EU’s chief technology officer, said that misleading users through visual labels, lack of transparency in advertising and restricting researchers’ access should not be allowed in the EU’s online environment. Virkunen stressed that the DSA is designed to protect users’ rights, enable researchers to monitor potential threats and restore trust in digital services. According to her, the decision to not comply with the requirements shows that X is responsible for undermining the rules developed.

For violations of the DSA provisions, the EU has the right to impose fines of up to six percent of a company’s global annual revenue. In the case of X, which Musk acquired in October 2022 for $44 billion and later transferred to his second company, xAI, for $33 billion, the maximum possible fine has not yet been specified.

The platform can appeal the European Commission’s decision, and Musk has already said he intends to do so if X is found guilty of violating EU rules. The company must notify the EU within sixty days of what steps it plans to take to eliminate the “misleading” use of the blue labels. It must then submit a decision on the regulator’s other concerns within ninety days. Failure to comply with these requirements could result in additional fines for X.