European Union fines Elon Musk’s social network $140 million: What’s reason
Photo: Elon Musk (Getty Images)
The EU has fined Twitter (X), the company of US billionaire Elon Musk, €120 million (around $140 million) for violating digital services rules, including a "deceptive design" of the blue checkmark, according to The Verge and Bloomberg.
This case marks the first time a company has been fined under the Digital Services Act (DSA) for restricting "illegal and harmful activity" on online platforms. The fine is the result of an EU investigation into Twitter (X) that began in December 2023.
In July 2024, the EU ruled that X failed to meet its obligations regarding advertising transparency, researcher access to data, and "dark patterns" — interface features designed to deceive users.
Misleading blue checkmarks
Twitter’s blue checkmark system was deemed misleading to users because it allowed anyone to pay for "verification," making it harder to determine the authenticity of X accounts.
The European Commission noted that while the DSA does not require user verification, "it clearly prohibits online platforms from falsely claiming that users have been verified."
X can appeal the fine and has 60 working days to inform the EU about the measures it will take to change the use of blue checkmarks, as well as 90 days to correct other violations. Failure to meet these deadlines could result in additional penalties.
The 2023 investigation was also launched to closely examine X’s moderation practices and the spread of illegal or harmful content on the platform. It is still ongoing and could lead to further sanctions.
EU criticism of Twitter (X)
The EU has criticized X for the rise in misinformation following its acquisition by Musk. In January, EU lawmakers promised to "vigorously" investigate the social network’s actions over concerns that the billionaire was promoting the leader of Germany’s far-right party on the platform.
Musk used X to support other far-right figures and sparked outrage after making a controversial gesture during his speech at Trump’s inauguration.
Trump sees US companies being targeted
US President Donald Trump’s envoy to the EU, Andrew Puzder, accused the bloc of "unfairly targeting" American tech giants.
"The only substantial meaningful fines that have been imposed so far have been against American companies," he said.
According to him, European legislation was designed in a way that primarily covers US-based companies. Bloomberg reports that these rules, along with other regulations governing digital markets and antitrust behavior, provoked anger within the Trump administration.
At the end of November, the US Department of Government Efficiency (DOGE) effectively ceased operations. It had been established by the Trump administration under billionaire Elon Musk.
