Elon Musk’s X Fined €120 Million for Misleading Blue Ticks

Elon Musk’s social media platform, X, faces a substantial fine of €120 million (£105 million) levied by the European Union (EU) regarding its controversial blue tick verification system. The European Commission has stated that X misleads users by allowing individuals to purchase verified badges without meaningful verification of accounts.

Concerns Over User Deception

The Commission asserts that this practice exposes users to various scams, including impersonation fraud. Central to the EU’s ruling is the concern that the lack of genuine verification erodes user trust and can lead to manipulation by malicious entities.

Comments from Officials

U.S. Vice President JD Vance criticized the EU’s decision, expressing that the company is being penalized for not engaging in censorship. He argued that the EU should prioritize free speech instead of targeting American companies.

• Fines are based on the severity of infringements and their impact on EU users.
• X is required to outline plans to comply with EU regulations, failing which it may incur additional fines.

EU Regulations and Accountability

The EU’s action marks its inaugural ruling regarding a platform’s non-compliance with its Digital Services Act (DSA). This legislation dictates requirements for online platforms concerning content, data, and advertising while ensuring accountability.

Henna Virkkunen, the EU regulator’s executive vice-president for tech sovereignty, stated the importance of holding X accountable for undermining user rights. She emphasized that obscuring information and shutting out researchers remain unacceptable practices within the EU.

Changes to Verification System

Following Musk’s acquisition of Twitter in late 2022, the verification system underwent significant changes. The new model tied verification to a Premium subscription model, requiring users to pay a monthly fee for blue tick badges. To secure a verified badge, an account must:

• Possess a display name and profile picture.
• Have a confirmed phone number.
• Demonstrate recent activity within the past 30 days.
• Not engage in misleading practices or spamming.

The motive behind these changes was to encourage subscriptions and enhance the platform’s revenue. Nevertheless, the restructured verification system is controversial, as critics argue it may facilitate scams and amplify the presence of fraudulent accounts.

Implications for X Moving Forward

As X navigates this substantial penalty, it must take swift action to comply with the EU’s regulations. The outcome will not only affect its operations in the EU but may also set a precedent for how social media platforms approach user verification and advertising transparency in the future.