Elon Musk's social media platform, X, has been fined €120 million (approximately $140 million) by the European Union for several violations related to its blue checkmark system. The EU's European Commission determined that the "deceptive design" of this verification system allows users to purchase checkmarks, thereby complicating the assessment of account authenticity and potentially exposing users to scams and impersonation fraud. The ruling cites breaches under the Digital Services Act (DSA), which mandates that platforms cannot mislead users regarding verification status.
The investigation into X started two years ago, marking a significant regulatory effort by the EU to oversee social media companies. Alongside the fine, the Commission noted that X had also failed to provide adequate access to public data for researchers and lacked transparency in its advertisement repository.
In response, Musk shared a post from U.S. Vice President JD Vance, who criticized the EU for its actions against American companies, labeling such fines as unwarranted. This aligns with Musk's ongoing criticisms of the EU's regulatory framework, which he has previously characterized as censorship.
Musk's introduction of purchasable blue checkmarks followed his acquisition of Twitter in 2022, a move that sparked controversy and led to chaotic impersonations of public figures, affecting stock prices of major companies.
Earlier this year, Musk announced that X had merged with his AI startup, xAI, further expanding his ventures in the technology sector. Despite facing regulatory challenges in Europe, Musk continues to advocate for fewer restrictions on social media platforms.