The European Commission imposed a €120 million (approximately $140 million) fine on Elon Musk's X platform due to breaches of transparency requirements under the Digital Services Act. The EU's regulatory body revealed that it launched a probe last year into the company's blue checkmark verification process—originally rolled out during its Twitter phase—alongside other potential DSA infractions. The ruling today addresses the misleading aspects of the checkmark feature, insufficient clarity in X's ad database, and the platform's refusal to grant researchers access to public information.
At the heart of the Commission's concerns with X's verification process is the shift from a manually vetted blue badge to one available for purchase by any user. This change, per the EU, heightens dangers of deceptive schemes and fake identities, leaving users unable to distinguish genuine profiles from imposters. The statement emphasizes that although the DSA doesn't require user authentication, it bans platforms from implying verification has occurred when it hasn't.
Additionally, the EU determined that X's ad archive incorporates elements and restrictions that hinder honest users and the broader audience from identifying ad origins or detecting fraudulent promotions and harmful operations. The platform, according to the decision, does not disclose details about what ads contain or who funds their display.
The final violation involves the DSA-mandated sharing of public data with approved researchers. The Commission argues that X's restrictive policies unnecessarily block such access, thereby hindering studies on key systemic threats across the European Union.
X must reply to the EU's finding of non-compliance regarding the blue checkmarks within 60 business days—this marks the initial decision of its kind—and deliver a corrective strategy within 90 days for the issues tied to its ad archive and data availability. Ignoring these requirements may trigger further monetary sanctions.