The European Commission fines X 120 million euros for violating transparency rules under the Digital Services Act. The blue checkmark, among other things, is at the root of the penalty.
The European Commission has imposed a fine of 120 million euros on Elon Musk’s X. The former Twitter violates three different provisions of the Digital Services Act (DSA). This legislation imposes strict obligations on large online platforms regarding transparency, user protection, and data access.
Violation 1: blue checkmark
Firstly, the Commission judges that X makes misleading design choices around the famous blue checkmark. Users can buy this checkmark, but it incorrectly suggests that an account is verified. Moreover, this was effectively the meaning of the checkmark before Musk bought Twitter.
According to the DSA, platforms must not pretend that users are verified when they are not in reality. This approach, according to the Commission, would lead to confusion among users and increased exposure to fraud and misinformation.
Violation 2: lack of transparency
A second violation concerns the lack of transparency in X’s advertising platform. The ad library, which should make information about ads accessible to researchers and the public, is insufficient according to the Commission.
Important data such as the content and subject of ads, and who pays for them, are missing. Moreover, X makes it difficult to access this information in a timely and efficient manner, hindering the monitoring of online advertisements.
Violation 3: no access to data
Finally, the Commission accuses X of not giving researchers access to public data on the platform. Scraping is prohibited via the terms of use, and alternative access methods contain unnecessary barriers according to the Commission. This hinders independent research into risks and systemic problems on X.
The Commission thus finds that X violates the DSA in three different ways. None of the violations come as a surprise. X’s practices under Musk’s management were criticized from the beginning as being inadequate for the EU’s expectations. This is now confirmed.
“Misleading users with blue checkmarks, hiding information in ads, and excluding researchers have no place on the internet in the EU,” says Henna Virkkunen, European Executive Vice-President for Tech Sovereignty, Security and Democracy, about the situation. “The DSA protects users, gives researchers the opportunity to expose potential threats, and restores trust in the online environment. With the first DSA decision on non-compliance, we hold X accountable for undermining user rights and evading accountability.”
First official DSA sanction
The fine is the first formal sanction imposed by the Commission under the DSA. X must inform within 60 working days how it will stop the misleading practices around the blue checkmark. For the problems with the ad library and data access, the company has 90 working days to submit an action plan. The European Commission will then decide on further steps.
The fine is not yet enormously high but serves as a significant shot across the bow. If X does not comply with the imposed measures, additional penalty payments may follow. Meanwhile, the Commission is further investigating whether X violates other obligations under the DSA, including the approach to illegal content and information manipulation.