EU fines Elon Musk’s X €120m for misleading verification and transparency practices

The European Union has imposed a €120 million (£105 million) fine on Elon Musk’s social media platform X for its handling of blue verification badges. The European Commission criticized X for allowing users to pay for blue checkmarks without adequately verifying the identities behind the accounts, potentially exposing users to scams, impersonation, and other forms of manipulation. In addition, the EU highlighted a lack of transparency in X’s advertising practices and restricted access to public data for researchers. This fine represents the first enforcement action under the EU’s Digital Services Act (DSA), which governs content, data, and advertising obligations for online platforms. US politicians, including Vice President JD Vance, criticized the EU’s approach, arguing it unfairly targets American companies. Musk’s controversial changes to the verification system, implemented after his acquisition of Twitter in late 2022, shifted the blue tick from a proof-of-identity system to a subscription-based feature under X Premium. While intended to increase subscription revenue and reduce bots, the move has faced widespread criticism for facilitating impersonation and misleading content. X must now outline compliance measures to the EU or face ongoing fines.