Elon Musk's X platform has been fined nearly $140 million by the European Union under its Digital Services Act (DSA). This is a significant step forward for regulators, who have been investigating X since 2023.
The fine comes after X was found to be violating the DSA in several key areas. One major issue was the way X handled its blue checkmark verification system. When Musk took over Twitter, he changed the platform's historical use of the blue checkmark to verify notable users' identities. However, instead of keeping the traditional blue checkmark for verified accounts, X started selling blue checks for $8 per month.
This decision led to a surge in fake accounts impersonating notable celebrities, officials, and brands. The European Commission found that this was deceptive and exposed users to scams and manipulation by malicious actors. As a result, X is being fined nearly $140 million under the DSA's provisions on deception.
Another issue with X was its lack of transparency and accessibility for researchers accessing its ad repository. The DSA requires platforms like X to make certain details about ads public so that researchers can detect scams, hybrid threat campaigns, coordinated information operations, and fake advertisements.
However, X failed to provide this access in a timely manner or fully, leading to "excessive delays" when researchers sought data. The commission also found that X excluded critical information from the ad repository, making it harder for researchers to determine who was paying for ads.
X has 60 days to share its plans for fixing these compliance issues with the Commission. However, the platform's CEO Elon Musk is reportedly planning to sue the EU over the fine. This move has been criticized by Vice President JD Vance and former US President Donald Trump, who claim that the EU's regulations are attacking American companies and censoring free speech.
The European Commission, however, remains confident in its decision and believes that X received a "modest fine" proportionate to the risks it could expose EU users to. The commission's tech chief Henna Virkkunen emphasized that the DSA is not about censorship but rather about ensuring online platforms comply with certain standards.
This ruling marks an important milestone for regulators and sets a precedent for how they will approach big tech companies in the future. As X navigates its response to this fine, it remains unclear whether it can successfully challenge the decision or whether the EU's regulations will prevail.
The fine comes after X was found to be violating the DSA in several key areas. One major issue was the way X handled its blue checkmark verification system. When Musk took over Twitter, he changed the platform's historical use of the blue checkmark to verify notable users' identities. However, instead of keeping the traditional blue checkmark for verified accounts, X started selling blue checks for $8 per month.
This decision led to a surge in fake accounts impersonating notable celebrities, officials, and brands. The European Commission found that this was deceptive and exposed users to scams and manipulation by malicious actors. As a result, X is being fined nearly $140 million under the DSA's provisions on deception.
Another issue with X was its lack of transparency and accessibility for researchers accessing its ad repository. The DSA requires platforms like X to make certain details about ads public so that researchers can detect scams, hybrid threat campaigns, coordinated information operations, and fake advertisements.
However, X failed to provide this access in a timely manner or fully, leading to "excessive delays" when researchers sought data. The commission also found that X excluded critical information from the ad repository, making it harder for researchers to determine who was paying for ads.
X has 60 days to share its plans for fixing these compliance issues with the Commission. However, the platform's CEO Elon Musk is reportedly planning to sue the EU over the fine. This move has been criticized by Vice President JD Vance and former US President Donald Trump, who claim that the EU's regulations are attacking American companies and censoring free speech.
The European Commission, however, remains confident in its decision and believes that X received a "modest fine" proportionate to the risks it could expose EU users to. The commission's tech chief Henna Virkkunen emphasized that the DSA is not about censorship but rather about ensuring online platforms comply with certain standards.
This ruling marks an important milestone for regulators and sets a precedent for how they will approach big tech companies in the future. As X navigates its response to this fine, it remains unclear whether it can successfully challenge the decision or whether the EU's regulations will prevail.