EU Fines Elon Musk's X €120m in First Digital Services Act Ruling
The European Commission has fined Elon Musk's social media platform X €120 million for breaching the EU's Digital Services Act (DSA). This marks the first non-compliance ruling under the new digital laws since the investigation began about two years ago, with formal proceedings initiated in December 2023.
The fines address three main violations: deceptive practices surrounding the blue-tick verification system, gaps in advertising transparency, and restricted access to public data for researchers. Specifically, €45 million relates to the paid verification badge, €35 million to advertising regulation breaches, and €40 million to data-access limitations.
After Musk's takeover and rebranding of Twitter to X, the blue-tick status shifted to a purchasable feature through X Premium, altering traditional verification norms and leading to the breach concerning deceptive verification.
Under the DSA, violations can incur fines up to 6% of worldwide revenue; X's estimated 2024 revenue is between $2.5 billion and $2.7 billion. The platform now has 90 days to submit an action plan and may appeal the decision to the European Court of Justice.
European Commission executive vice-president for tech regulation Henna Virkkunen stated the ruling underscores how X undermined user rights through deceptive blue ticks, opaque advertising practices, and limited researcher access, all deemed unacceptable within the EU.
The EU continues investigations into X regarding algorithm and content changes following Musk's takeover, potential incitement to violence or terrorism, and the platform's flagging mechanisms for illegal content. Separately, TikTok has made commitments to provide advertising repositories to enhance transparency under the DSA.
