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

Summary – The European Union has fined X, Elon Musk’s social media platform, €120 million for breaching digital transparency regulations relating to verification processes.,

Article –

The European Union (EU) has imposed a €120 million fine on X, the social media platform owned by Elon Musk, due to violations of digital transparency rules related to its verification processes. This fine is part of a significant enforcement action under the Digital Services Act (DSA), focusing on the platform’s ‘blue checkmark’ verification system.

What Happened?

In June 2024, the European Commission announced its decision to fine X for failing to comply with transparency obligations concerning how users are verified on digital platforms. The primary issue was X’s management of the blue checkmark system, which identifies verified and authentic user profiles. The investigation revealed that X:

• Did not provide clear information about the verification criteria
• Lacked accountability mechanisms for users regarding the status and removal of blue checkmarks

Who Is Involved?

The main parties involved are:

• The European Commission: Responsible for enforcing EU digital regulations, including the DSA.
• X (formerly Twitter): Elon Musk’s social media platform facing the fine and compliance requirements.
• Margrethe Vestager: Executive Vice-President for the Digital Single Market, overseeing regulatory compliance under the DSA framework.

The Digital Services Act demands platforms like X to clearly communicate with users about content moderation and verification. According to the Commission, X’s practices conflicted with these mandates.

European Reactions

The European Commission stated: “The enforcement of transparency and accountability is essential for maintaining trust in online platforms. X’s breach of these rules undermines this trust and violates the Digital Services Act.”

This decision was supported by various EU member states advocating for stricter digital platform regulations to protect digital rights. X representatives acknowledged the fine and committed to improve their compliance framework.

Civil society groups in Europe largely welcomed the fine, seeing it as a crucial precedent for digital platform regulation and user protection.

Immediate Consequences

The enforcement action involves:

1. A significant financial penalty of €120 million.
2. A compliance deadline for X to address transparency issues in its blue checkmark system.
3. Potential additional fines or sanctions if X fails to comply.

This case highlights the EU’s firm regulatory stance towards digital platforms and signals the importance of adhering to the DSA.

What Comes Next?

The European Commission requires X to report on implemented changes within 60 days following the fine. The Commission will continue monitoring to ensure full compliance.

Additionally, the Commission plans to review the wider digital transparency environment and may propose further regulatory enhancements to prevent similar breaches across other platforms.

X has pledged to cooperate with EU authorities and enhance clarity and accountability in its verification processes to meet DSA requirements.

This enforcement marks a pivotal moment in EU digital policy, underlining the bloc’s role in setting global online governance standards.

Stay tuned to Questiqa Europe for ongoing regional updates and detailed reports.

About The Author