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

Summary – The European Union has fined Elon Musk’s X platform €120 million for violating digital transparency rules related to its verification system.,

Article –

The European Union (EU) has imposed a €120 million fine on Elon Musk’s social media platform X for violations of digital transparency regulations under the Digital Services Act (DSA). This enforcement marks a key development in the EU’s efforts to regulate online platforms and ensure user protection.

What Happened?

On June 15, 2024, the European Commission announced that X, formerly known as Twitter, breached the DSA transparency requirements related to its ‘blue checkmark’ verification system. The investigation revealed that X did not provide clear and accessible information on the verification process and failed to disclose the commercial terms behind its subscription model. These omissions violated the DSA’s obligations for transparency concerning advertising, subscription services, and user verification.

Who Is Involved?

The European Commission, led by Executive Vice-President Margrethe Vestager, spearheaded the enforcement action. Vestager emphasized the importance of transparency for consumer protection and fair competition. Elon Musk, owner of X, has implemented various strategic changes on the platform, which operates across EU member states and is therefore subject to EU regulation.

What Does This Mean for the EU Digital Market?

The ruling highlights the EU’s firm commitment to the Digital Services Act, effective since late 2023, which aims to regulate online platforms and safeguard digital market integrity. Key implications include:

• Increased scrutiny on subscription services and verification systems across social media platforms.
• A clear warning to tech companies that non-compliance with transparency rules will incur significant penalties.
• Likely business practice revisions by X to ensure full compliance and avoid further sanctions.

European Reactions

EU digital policy officials and member state governments have broadly supported this enforcement as a demonstration of the bloc’s regulatory strength. EU Commissioner Thierry Breton stated, “Transparency and user rights are non-negotiable in the European digital ecosystem.” Civil society organizations also praised the move as vital for maintaining user trust and the integrity of online spaces.

What Comes Next?

X may appeal the fine under the EU legal framework but has not yet responded publicly. The company is expected to adjust its verification system and potentially provide regular transparency reports to the Commission. Meanwhile, the European Commission will continue its rigorous monitoring of digital platforms and may investigate additional compliance issues as part of the ongoing enforcement of the Digital Services Act.

About The Author