X €120 million fine: The European Commission slapped a €120 million ($140 million) fine on Friday on Elon Musk’s social media platform X, formerly known as Twitter, for the first time under its landmark Digital Services Act following a two-year investigation, according to decisions announced on Friday by regulators.
The European Commission said X breached three parts of the DSA linked to transparency and user protection.
As per Associated Press (AP) report, officials found that X’s blue checkmark system amounted to “deceptive design practices” because paid badges do not confirm a user’s identity. Before Musk took over the company in 2022, the symbol was used mainly for verified public figures. Musk’s paid system, regulators said, “makes it difficult for users to judge the authenticity of accounts and content”.
The Commission also criticised X’s online advertising database, saying design features and delays made it hard for researchers and users to see who paid for adverts and whom they targeted.
The EU further said X placed “unnecessary barriers” on researchers seeking access to public data a requirement under the DSA meant to help identify risks such as misinformation and scams.
Henna Virkkunen, the EU’s executive vice-president for tech policy, said the fine was based on the scale and duration of the violations.
“We are not here to impose the highest fines. We are here to make sure that our digital legislation is enforced,” she told reporters, in comments carried by Reuters. “If you comply with our rules, you don’t get the fine.”
She also stressed that the DSA “has nothing to do with censorship”.
Some American officials have criticised Europe’s scrutiny of major US tech firms. Reuters reported that US Vice President JD Vance wrote on X before the decision: “The EU should be supporting free speech, not attacking American companies over garbage.”
The Commission responded by saying its standards apply equally to all companies and do not target any nationality.
While X was penalised, Reuters said rival platform TikTok avoided a fine after agreeing to make changes to its advertisement library to meet transparency rules.
TikTok said the law should be applied “equally and consistently” across all platforms.
X now has between 60 and 90 working days to show how it will comply with the DSA, depending on the specific issue.
The Commission said its wider investigations into illegal content on X, and separate inquiries into TikTok’s systems and child-safety measures, are still under way. Under the DSA, companies can face fines of up to 6% of global annual revenue for serious violations.
(With inputs from AP and Reuters)