According to CNET, the European Commission has fined Elon Musk’s X a whopping 120 million euros, which is about $140 million. This penalty, announced on Friday, July 12, 2024, is the result of a two-year investigation. Regulators found X in breach of the EU’s Digital Services Act (DSA), specifically calling out the “deceptive design” of its blue checkmark verification system. The Commission stated that because anyone can pay for the checkmark without meaningful identity checks, it exposes users to scams and impersonation fraud. Other violations leading to the fine include X failing to meet transparency requirements for its ad repository and not providing adequate data access to researchers. In a related move, TikTok avoided a fine on the same day by agreeing to improve its ad transparency.
The core issue: paid verification
Here’s the thing: the EU isn’t saying X *has* to verify identities. The DSA doesn’t demand that. What it does demand is that platforms don’t use “deceptive design.” And that’s the heart of this whole $140 million headache for X. Before Musk bought Twitter, a blue check meant the platform had vetted you as a notable, authentic person or entity. Now, it basically just means you paid $8. The EU’s argument is that this change, without clear differentiation, tricks users. It makes it difficult to know if you’re engaging with a legitimate news source, a celebrity, or just some random person—or worse, a malicious actor—with a credit card. That, in their view, undermines the entire online environment.
A bigger power struggle
This fine isn’t happening in a vacuum. It’s the latest and loudest salvo in an ongoing regulatory war between Brussels and Big Tech, especially US-based companies. The relationship is incredibly strained. Musk himself reposted a comment from FCC Chairman Brendan Carr accusing Europe of essentially taxing American success to subsidize a continent held back by its own rules. Meanwhile, the EU’s tech chief, Hanna Virkkunen, framed this as a landmark moment for the DSA, calling it the “first non-compliance decision” that holds X accountable for “undermining users’ rights.” So, who’s right? Is this about protecting users or protecting European interests? It’s probably a bit of both, but the legal precedent is now set.
What this means for X (and everyone else)
The immediate financial hit is one thing. But the real impact is strategic. X now has a choice: it can either fight this legally, pay the fine and ignore the underlying demands (unlikely), or it has to fundamentally redesign its verification and data access systems for the EU market. Imran Ahmed from the Center for Countering Digital Hate, which X sued last year, praised the decision, saying it confirms that “transparency is not optional.” That’s the key takeaway. The EU is using the DSA to force a level of operational transparency that these platforms have fiercely resisted. With TikTok’s last-minute deal to avoid a fine, we’re seeing a playbook emerge: comply or pay up. For other giants like Meta and Google, this is a very clear warning shot. The era of “move fast and break things” is over in Europe. Now, it’s “move deliberately and show your work.”
