EU Commission's ad account terminated after €120M fine over blue tick badges.
The European Union has stood firm in its decision to impose a hefty $140 million fine on social media giant X, despite warnings from the Trump administration. The fine stems from X’s alleged violation of the EU’s Digital Services Act, specifically its lack of transparency in advertising and deceptive changes to the blue checkmark feature.
X Accused of Misleading Users
The European Commission has accused X of misleading users with its blue checkmark system, which no longer verifies accounts based on identity checks. Instead, users can pay for the badge, potentially exposing others to scams and impersonation. The Commission also found X’s advertising repository lacking, with excessive delays and missing information.
X’s owner, Elon Musk, has responded fiercely, saying the EU should be abolished. However, the Commission remains resolute, with Spokesperson Thomas Regnier emphasizing that the fine is proportionate and based on the nature, gravity, and duration of the violations.
The US government has criticized the move, with President Donald Trump calling it “nasty” and accusing Europe of heading in a bad direction. US officials claim the fine is an attack on American companies, sparking concerns of a transatlantic tech war.
X Fine Under Digital Service Act
The fine is the first non-compliance decision under the Digital Services Act, which aims to create a safer digital space and protect users’ rights. X has 90 days to pay the fine and must submit an action plan to address the issues.
The European Commission’s Henna Virkkunen stressed that transparency is not optional and that platforms must design systems that foster trust, not deception. The Commission will continue to enforce the Digital Services Act, ensuring that online platforms prioritize users’ rights and safety.
The EU’s decision sets a critical global precedent, forcing X to change its practices and signaling active enforcement of digital regulations. This move may have far-reaching implications for tech companies operating in the EU.
X’s blue checkmark system has been criticized for being deceptive, and the platform’s advertising repository lacks transparency. The Commission’s investigation found that X’s changes to the blue checkmark feature were designed to mislead users.
The fine is calculated based on the severity of the breaches, the number of EU users affected, and the duration of the violations. X must now demonstrate how it will bring its verification system, ad library, and data access policies into compliance.
The EU’s Digital Services Act requires very large online platforms like X to share anonymized datasets with researchers, allowing them to study systemic risks. X has been accused of blocking researchers access to public data, hindering efforts to detect scams and coordinated influence campaigns.
The transatlantic tech war is escalating, with the US accusing the EU of regulatory overreach.
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