Elon Musk’s X fined $140 million by EU over ‘deceptive’ blue checkmarks
Elon Musk is facing fresh scrutiny from the European Union (EU) after his social media platform, X, was hit with a hefty fine of €120 million (approximately $140 million). This penalty is a result of several violations linked to the site’s controversial blue checkmark system, which the EU claims has misled users and opened them up to scams and impersonation fraud. The fine stems from an investigation that began two years ago under the EU’s Digital Services Act (DSA), which aims to regulate online platforms and ensure user safety. The European Commission, the EU’s regulatory body, emphasized that allowing anyone to purchase a “verified” checkmark compromises the authenticity of accounts, making it challenging for users to discern real profiles from potentially fraudulent ones.
Musk’s approach to the blue checkmark system has been widely criticized. When he acquired Twitter in 2022, one of his first significant changes was to enable users to buy verification, a move that led to a chaotic rollout filled with impersonation incidents. Notably, parody accounts impersonated public figures and brands, causing confusion and even affecting stock prices of companies like a major pharmaceutical firm. In light of the fine, Musk has received support from U.S. Vice President JD Vance, who urged the EU to cease its “attacks” on American companies, framing the fine as an overreach. Musk has previously expressed disdain for EU regulations, labeling the DSA as “misinformation” and accusing the Commission of censoring free speech.
As Musk continues to navigate this regulatory landscape, the fine represents a significant challenge for both him and X. The EU’s decision underscores the complexities of managing user safety on social media platforms, especially as they evolve rapidly in the digital age. With Musk’s ongoing ambitions for X, particularly after its acquisition by his AI startup, xAI, the outcome of this conflict could have far-reaching implications for the future of social media regulation and the balance of power between tech giants and governmental bodies.
Tesla CEO Elon Musk has to hit a series of ambitious goals to unlock the full $1 trillion pay package.
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The European Union has hit Elon Musk’s X with a $140 million fine.
The bloc said the social media platform’s blue checkmark system exposes users to scams.
Musk received support from US Vice President JD Vance, who warned the EU to stop “attacking American companies.”
Elon Musk is set for
another battle with the European Union
after the bloc fined his social media site X.
The EU said on Friday it had issued a fine of €120 million ($140 million) to X over a number of violations, including the “deceptive design” of the site’s blue checkmarks.
Earlier on Friday, Musk reposted an X post from US Vice President JD Vance, who warned the EU against fining Musk’s company and said the bloc should avoid “attacking American companies over garbage.”
The European Union launched
its investigation into X
two years ago under its landmark Digital Services Act, or DSA.
In its decision on Friday, the European Commission, the EU’s regulatory arm, said the ability for anyone to pay for a “verified” checkmark makes it difficult for users to assess whether an account is authentic, leaving them open to scams and impersonation fraud.
The Commission said this violated regulations under the DSA prohibiting social media platforms from falsely claiming users have been verified. The ruling also found that X had committed additional breaches by failing to provide researchers access to public data and not making its advertisement repository transparent enough.
X’s parent company, xAI, said “Legacy Media Lies” in what seemed to be an automated response to a Business Insider request for comment.
Making blue checkmarks available to buy was one of the first moves Musk made after buying the social media platform, then called Twitter, in 2022. Previously, Twitter assigned the checkmark to accounts to prevent impersonation.
The
initial rollout of purchasable checkmarks was chaotic
, with parody accounts impersonating politicians, celebrities, and major brands, sowing confusion and even temporarily tanking a major drugmaker’s stock price.
Since then, Musk has radically overhauled the social media site and, earlier this year, the billionaire announced that X had been
acquired by his AI startup xAI
.
The Tesla CEO has been highly critical of the EU’s attempts to regulate social media companies. In response to a preliminary finding by the European Commission last year, Musk accused the regulator of
censoring speech
and called the DSA
“misinformation.”
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