The European Union has imposed a €120 million penalty, roughly $140 million, on Elon Musk’s social media platform X for violating the Digital Services Act, specifically for the misleading use of its blue tick verification system. This fine represents the first instance in which a company has been held accountable under the EU’s relatively new legislation, which aims to regulate online platforms, enforce transparency, and protect users from deceptive practices. Elon Musk reacted swiftly on X with a one-word post, dismissing the penalty as “Bullshit,” reflecting the tensions between regulatory authorities and tech executives over enforcement of digital regulations.
The case centers on how X applied its verified checkmarks, a feature widely associated with authenticity and trust. The European Commission determined that the platform had allowed the verification badge to be obtained through mechanisms that misrepresented the status of certain accounts, effectively deceiving users. Alongside the financial penalty, the company has been instructed to submit a compliance plan within 60 days detailing how it will correct the deceptive verification practices. Failure to meet these requirements could result in additional sanctions, intensifying the pressure on the platform to align with EU digital standards.
The dispute escalated further when Nikita Bier, X’s head of product, publicly criticized the European Commission for allegedly exploiting internal post formats to increase the visibility of its announcement about the fine. Bier claimed the Commission used a format reserved for advertisements despite not having used its ad account since 2021 and suggested that the Commission’s post contained a link designed to mislead users into thinking it was a video, artificially boosting engagement. In response, X temporarily disabled the European Commission’s ad account. However, sources indicate this action is largely symbolic, as the Commission has reportedly not utilized the account in recent years.
Despite the internal platform dispute, the EU fine remains in effect unless X succeeds in an appeal. The company is now tasked with both paying the penalty and demonstrating a clear strategy for preventing future misuse of verified accounts. Regulatory observers note that this enforcement sets a precedent for how European authorities may hold major social media companies accountable under the Digital Services Act, signaling that compliance with transparency and user protection standards is mandatory. The situation also underscores the growing friction between tech platforms and governments as digital regulation becomes more stringent, with X’s response highlighting the challenges regulators face when enforcing rules against influential technology companies. The European Commission has been contacted for comment by The Verge regarding the dispute and ongoing compliance requirements.
The incident reflects broader scrutiny of social media practices across Europe, particularly surrounding verification systems, transparency, and user trust. With this fine, the EU reinforces the importance of clear, honest digital practices while testing the enforcement mechanisms of newly implemented legislation. How X navigates these regulatory demands may influence the approach of other platforms operating in the European market, potentially shaping global standards for verification and online accountability.
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