X Fined €120 Million by EU for User Protection Violations
Elon Musk’s social media platform, known as X, has been fined €120 million (£105 million) by the European Union following a detailed investigation that revealed multiple breaches of the Digital Services Act (DSA). These violations reportedly exposed users to scams and manipulation, marking a significant enforcement action under the EU’s stringent digital regulations.
The decision carries substantial implications for how tech companies operate in Europe, particularly for U.S.-based firms facing criticism over digital transparency and accountability.
Key Developments
- EU Investigation: The European Commission launched its investigation into X two years ago, leading to the first non-compliance decision under the DSA.
- Breach Details: X was cited for three significant violations, including the misleading use of blue verification checkmarks, which allowed anyone to purchase the badge for $8 a month, undermining trust in account authenticity.
- Transparency Failures: Regulators highlighted X’s shortcomings in providing a transparent advertisement database and access to public data for researchers.
- Deadline for Compliance: X has 60 working days to address the blue checkmark violations and 90 days for the remaining issues, with potential daily fines for non-compliance.
Full Report
Findings of the Commission
The European Commission’s investigation stressed that the altered blue checkmarks on X led to increased risks for users, making it challenging to identify legitimate accounts and content. This change came after Musk acquired the platform for $44 billion in 2022, wherein the checkmarks no longer signified verified identity, thus lowering the bar for scammers and misleading actors.
Additionally, X’s compliance with advertising transparency regulations was deemed insufficient. The platform had imposed "access barriers" that hindered users’ ability to see critical details about the advertisements, including who financed them and intended audiences. The commission also noted excessive delays in processing, which detract from the usefulness of the ad repository designed to protect users.
Official Statements
Henna Virkkunen, the EU’s executive vice president for technology sovereignty, security, and democracy, strongly denounced X’s practices, asserting that misleading users and obstructing access to information has no place in the EU. This enforcement action is seen as a crucial step in restoring trust in online environments and protecting user rights.
Context & Previous Events
The investigation stems from the EU’s broader initiative to regulate digital platforms and safeguard internet users. The Trump administration has previously criticized EU regulations, suggesting they disproportionately target U.S. technology firms and hinting at possible retaliation.
The results of this investigation serve as a landmark ruling, setting a precedent for how digital platforms prioritize user protection and transparency in an ever-evolving digital landscape.
