EU Fines X €120 Million for Violations of the Digital Services Act

The European Commission has fined X €120 million for breaching transparency and data-access requirements under the Digital Services Act. The ruling follows an investigation into the platform’s paid blue checkmarks, advertising repository and access to public data for researchers. It is the first non-compliance decision issued under the DSA.

The Commission found that X’s use of the blue checkmark for verified accounts deceives users because anyone can pay for the badge without meaningful identity verification. According to the regulator, this design makes it difficult for users to judge the authenticity of accounts and exposes them to scams, including impersonation frauds and other forms of manipulation. The DSA does not require platforms to verify users, but it prohibits presenting accounts as verified when no verification has taken place.

The Commission also concluded that X’s advertising repository does not meet the DSA’s transparency and accessibility requirements. It cited missing information, including the content and topic of advertisements and the legal entity paying for them. It also highlighted design features and delays that undermine the repository’s purpose. According to the Commission, accessible and searchable ad repositories are needed to detect scams, hybrid threat campaigns, coordinated information operations and fake advertisements.

Investigators found that X fails to meet its DSA obligation to provide researchers with access to public data. The company’s terms of service prohibit eligible researchers from independently accessing public data, including through scraping, and its procedures introduce barriers that restrict access.

Musk previously rejected the Commission’s preliminary findings and said he would appeal.

X has 60 working days to outline measures addressing the blue checkmark issue and 90 working days to submit an action plan on advertising transparency and data access. Failure to comply may result in periodic penalty payments.


Notes: This post was drafted with the assistance of AI tools and reviewed, edited, and published by humans. Image: Alexander Shatov

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