Elon Musk’s X social media platform fined $140 million for violating EU transparency rules
European Union regulators have imposed a hefty fine of $140 million (120 million euros) on Elon Musk’s social media platform X for breaching regulations designed to safeguard internet users in the EU from digital abuses. The European Commission announced that X violated “transparency obligations” outlined in the Digital Services Act (DSA). This marks the EU’s first enforcement action against a company for non-compliance with the law since its enactment in 2022.
According to a statement released by the European Commission, X was found to have misused its ‘blue checkmark’ feature, creating confusion among users. The commission highlighted that the verification process on the platform can be obtained through payment, making it challenging for users to verify the authenticity of accounts they interact with. This practice could potentially expose users to scams and manipulation by malicious actors.
In addition, the European Commission criticized X’s ads repository for failing to meet accessibility requirements specified in the DSA. Platforms operating in the EU are mandated to maintain a comprehensive database of all digital advertisements they host, including information on the advertiser and target audience. This measure aims to assist researchers in identifying fraudulent ads, fake promotions, and coordinated influence campaigns.
X has been given a 60-day deadline to submit a plan to address the concerns raised by the European Commission.
Federal Communications Commission Chairman Brendan Carr voiced his disagreement with the fine and expressed support for X. In a post shared by X owner Elon Musk, Carr criticized Europe for penalizing a successful U.S. tech company. X has yet to respond to requests for comment regarding the enforcement action.
The DSA mandates platforms to promptly remove “illegal content” and adhere to various restrictions, with violators facing substantial fines. This legislation has been a point of contention for American tech firms and critics of the law who argue that it infringes on free speech rights.
During a speech in Munich earlier this year, Vice President J.D. Vance denounced the EU’s content moderation policies as “authoritarian censorship,” according to the Center for Strategic and International Studies.
