EU fines Elon Musks X $140 million for lack of transparency
In a significant move underscoring the European Union’s commitment to digital accountability, the European Commission has imposed a landmark €120 million ($140 million) fine on Elon Musk’s platform, X, for breaching transparency requirements outlined in the Digital Services Act (DSA). This ruling marks the first enforcement action under the DSA, which aims to safeguard users from deceptive practices and ensure that online platforms operate transparently. The fine primarily stems from concerns over X’s controversial “blue checkmark” feature, which has shifted from a free verification tool to a paid service, leading to claims that it misleads users about account authenticity. The Commission’s investigation, initiated in December 2023, revealed that this deceptive design not only complicates the verification process for users but also heightens the risk of scams and misinformation on the platform.
The ruling highlights critical issues related to X’s advertising practices and its data transparency obligations. According to the Commission, X’s advertising repository lacks sufficient information on the content of ads and their financial backers, impeding public scrutiny and research efforts. This lack of transparency is a direct violation of DSA requirements, which aim to provide a clearer understanding of online advertising dynamics. Additionally, X’s failure to grant researchers access to necessary public data further exacerbates concerns about accountability and the platform’s role in combating misinformation. Henna Virkkunen, the European Commission’s executive vice-president for Tech Sovereignty, Security, and Democracy, emphasized that practices such as misleading users with blue checkmarks and obscuring ad information are unacceptable in the EU’s digital landscape.
Moving forward, X has a strict timeline to rectify these issues: it has 60 business days to propose solutions regarding the blue checkmark system and 90 days to address the concerns related to its advertising repository and data access for researchers. Failure to comply could result in additional fines, signaling the EU’s firm stance on enforcing digital regulations. This ruling not only sets a precedent for other tech companies operating in Europe but also reinforces the importance of transparency and user protection in the evolving digital ecosystem. As the EU continues to navigate the complexities of digital governance, this fine serves as a crucial reminder that accountability and ethical practices must be at the forefront of online platforms.
https://www.youtube.com/watch?v=TitwZzJtDoo
The European Commission on Friday issued a landmark €120 million fine to Elon Musk-owned
X
for
breaching transparency requirements
of the Digital Services Act (DSA).
The fine, the equivalent of about $140 million and the first issued under the European Union’s DSA, is linked to the “deceptive design of its ‘blue checkmark’, the lack of transparency of its advertising repository, and the failure to provide access to public data for researchers,”
the EU release states
.
SEE ALSO:
Elon Musk’s X rolls out feature that shows users’ country of origin – then suddenly removes it
The ”
blue checkmark
” is front-and-center in the ruling, stating that the once-free, now-paid checkmark deceives users and violates the DSA requirement to prohibit deceptive design practices. The blue checkmark now makes it difficult to verify authentic accounts and makes it easier for users to be scammed, according to the ruling.
“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 ruling states.
The ruling also cites a lack of transparency within X’s ad repository, stating that it has limited information about the content of advertisements and who is paying for them, which makes it difficult for researchers and the public to scrutinize.
X also failed to provide researchers access to public data as required by DSA.
The ruling follows a nearly
two-year investigation
launched in December 2023 to determine whether X violated DSA requirements related to the spread of illegal content and the effectiveness of its efforts to combat misinformation, the release states.
“Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU,” said Henna Virkkunen, executive vice-president for European Commission for Tech Sovereignty, Security and Democracy.
X now has 60 business days to bring forward plans to address its use of blue checkmarks, 90 days to address EU concerns regarding its ad repository and public data access to researchers or face further fines, according to the ruling.
