TLDR
- The European Commission fined X (formerly Twitter) 120 million euros ($140 million) for violating the Digital Services Act transparency rules.
- The violations include deceptive blue checkmark design, lack of advertising transparency, and blocking researcher access to public data.
- This marks the first penalty under the EU’s Digital Services Act, which was adopted in 2022 to regulate online platforms.
- X has 60 to 90 days to submit plans addressing the violations or face additional penalty payments.
- US officials including Secretary of State Marco Rubio and Vice President JD Vance criticized the fine as an attack on American tech companies.
The European Commission has fined Elon Musk’s social media platform X 120 million euros, which equals $140 million. This represents the first financial penalty issued under the Digital Services Act.
The fine was announced on Friday after a two-year investigation. The probe looked at how X handles content moderation and transparency requirements.
Violations Behind the Fine
EU regulators found three main violations. First, X used deceptive design for its blue checkmark verification system. The checkmark previously indicated verified accounts but changed after Musk’s takeover.
Second, the company failed to maintain a transparent advertising repository. This repository is meant to help users and researchers identify potential scam advertisements.
Third, X blocked researchers from accessing public data on the platform. The Digital Services Act requires platforms to provide this access for research purposes.
Henna Virkkunen serves as the EU’s executive vice president for tech sovereignty. She stated that deceiving users and shutting out researchers have no place online in the European Union.
Company Response Timeline
X now has specific deadlines to address these issues. The company must submit plans within 60 days for fixing the blue checkmark problems.
For the advertising repository and researcher access issues, X has 90 days to respond. The Commission warned that missing these deadlines could result in additional penalty payments.
X has not responded to requests for comment about the fine. The company operates under Musk’s ownership since late 2022.
US Government Pushback
American officials quickly criticized the European decision. Secretary of State Marco Rubio called the fine an attack on American tech platforms and the American people.
Vice President JD Vance posted on X before the announcement. He called reports of the fine “garbage” and accused the EU of demanding censorship.
Federal Communications Commission Chairman Brendan Carr also weighed in. He claimed Europe was fining a successful US tech company simply for being successful.
EU Defense of Decision
Virkkunen defended the fine as proportionate. She calculated it based on the nature of violations, their severity, and how long they lasted.
The EU tech chief said the Commission is not trying to impose the highest possible fines. Instead, they want to ensure digital legislation gets enforced properly.
She emphasized that the Digital Services Act has nothing to do with censorship. The law focuses on transparency and user protection requirements.
Other Companies Under Scrutiny
TikTok avoided a similar fine by making concessions. The ByteDance-owned app pledged changes to make its advertising library more transparent.
Meta and Temu also face charges for DSA violations. Those cases remain under investigation by EU regulators.
The Commission said ongoing investigations into illegal content on X will continue. A separate probe examining TikTok’s design and child protection measures also remains active.
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