The European Commission issued a $140 million fine to Elon Musk’s X, finding the platform violated the Digital Services Act (DSA). The European entity claims that the social media platform breached transparency obligations under the law.
According to the commission, X’s use of a “blue checkmark” for some accounts “deceives users.”
“On X, anyone can pay to obtain the ‘verified’ status without the company meaningfully verifying who is behind the account, making it difficult for users to judge the authenticity of accounts and content they engage with,” the European Commission argued. “This deception exposes users to scams, including impersonation frauds, as well as other forms of manipulation by malicious actors. While the DSA does not mandate user verification, it clearly prohibits online platforms from falsely claiming that users have been verified, when no such verification took place.”
The entity further claimed that the platform’s advertisement repository fails to meet transparency standards. The platform also fails to prove research with access to public data.
Executive Vice-President for Tech Sovereignty, Security and Democracy Henna Virkkunen said in a statement on the fine, “Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU. The DSA protects users. The DSA gives researchers the way to uncover potential threats. The DSA restores trust in the online environment. With the DSA’s first non-compliance decision, we are holding X responsible for undermining users’ rights and evading accountability.”
Ahead of the fine, Vice President JD Vance said of the matter, “Rumors swirling that the EU commission will fine X hundreds of millions of dollars for not engaging in censorship,” he wrote on social media. “The EU should be supporting free speech not attacking American companies over garbage.”
