EU Imposes €120 Million Fine on Elon Musk’s X Platform Over Digital Transparency Breaches

Summary – The European Union has fined X (formerly Twitter) €120 million for breaches of digital transparency regulations related to its verification system.,

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On June 19, 2024, the European Union (EU) imposed a €120 million fine on X, the social media platform formerly known as Twitter and owned by Elon Musk, for violations of the EU’s digital transparency regulations. The fine relates specifically to X’s handling of its ‘blue checkmark’ verification system, which the EU found to be insufficiently transparent and not compliant with regulatory standards under the Digital Services Act (DSA).

Parties Involved

The main entities in this case are:

• X (formerly Twitter): The social media platform under scrutiny.
• Elon Musk: Owner of X.
• European Commission: The EU’s executive body responsible for investigating and enforcing the penalty.
• Margrethe Vestager: European Commission Executive Vice-President in charge of digital policy, who announced the fine.

Background and Investigation

The investigation began in late 2023 following complaints about the opacity and potential misleading nature of X’s blue checkmark verification scheme. The Commission examined how verified status was granted, revoked, and communicated, concluding that the process failed to meet the transparency and nondiscrimination obligations imposed by the DSA.

In April 2024, a formal notice was issued to X requesting clarifications and remedial actions. After unsatisfactory responses, the Commission proceeded with the maximum penalty allowed under the DSA.

Consequences

This action has significant implications, both financially and politically:

• Financially: The €120 million fine is a substantial cost to X.
• Politically: The fine reinforces the EU’s commitment to digital sovereignty and user rights protection.
• Operationally: X is required to revise its verification procedures immediately to ensure compliance.

Reactions in Europe

European officials and member states have expressed strong support for the fine, affirming the importance of the DSA in ensuring safe and transparent online spaces. Commissioner Vestager emphasized the necessity of transparency and fairness to maintain user trust. Digital rights advocates hailed the decision as a landmark regulatory move.

Conversely, X expressed disappointment but indicated willingness to cooperate with the EU to resolve the issues.

Next Steps

X must submit a compliance plan within 30 days detailing how it will reform its blue checkmark system to meet digital transparency standards. Non-compliance may lead to further penalties or stricter regulatory actions. The European Commission will continue to monitor major digital platforms to ensure adherence to the DSA.

This enforcement may motivate other digital companies to proactively improve transparency to avoid similar sanctions.

Stay tuned for more updates on regional regulatory developments.

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