Elon Musk's social media platform, X, is the first large platform to be hit with a fine under the European Union's Digital Services Act (DSA), amounting to a whopping $140 million over its blue checkmark verification.
X Hit with First-Ever EU DSA Fine Worth $140 Million
The European Commission announced that it is fining X under the Digital Services Act worth $140 million (€120 million) for three key reasons, including its blue checkmark verification, ads, and access to public data for researchers.
The fine stems from the years-long investigation launched by the Commission against X for its violations, first centering on its blue checkmark verification.
The Commission is now imploring X to coordinate with them regarding the matter and fix the many issues found within the company's operations, particularly in the European region.
That being said, the fine will only apply to X if it fails to adhere to the DSA's warning and makes necessary changes to the platform to fix the issues the European Commission found on the platform.
X is only given 60 days to come up with a plan to remedy the issues found by the Commission and meet the demands, with the company required to detail specific measures for the blue check verification changes, in violation of Article 25 (1).
On the other hand, X is given 90 days to submit an action plan that can fix the problems found by the Commission in violation of Articles 39 and 40(12) of the Digital Services Act.
Digital Services Act Targets X's Verification, Ads
The Commission claims that the platform's verification program, represented by blue checkmarks, "deceives users" as anyone on X could obtain the blue check by paying for it via a subscription.
According to the EU, "This deception exposes users to scams, including impersonation frauds, as well as other forms of manipulation by malicious actors. 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."
On the other hand, X's ad repository was also targeted by the DSA for its failure to be transparent, claiming that the platform "incorporates design features and access barriers" that undermine the purpose.
Alongside this, X's ad repository also "lacks critical information, such as the content and topic of the advertisement, as well as the legal entity paying for it," said the Commission.
Lastly, the EU regarded that X failed to meet its Digital Services Act obligations, which require it to provide access to the platform's public data. The Commission said that X prohibits eligible researchers from accessing public data and even imposes "unnecessary barriers."
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