The European Commission has imposed a fine of €120 million (£105 million) on the social media platform X (formerly Twitter). The fine is related to the platform's blue tick verification badges.
Reasons for the Fine
The European Commission stated that X's practice of allowing users to pay for a blue verified check mark "deceives users" because the company does not "meaningfully verify" the identity behind the account. The Commission further explained that this practice exposes users to risks such as scams, including impersonation fraud, and manipulation by malicious actors.
Additionally, EU regulators noted X's failure to provide transparency regarding its advertising practices and its insufficient provision of public data access to researchers. The Commission calculated the fine based on the nature and gravity of these infringements, their impact on EU users, and their duration. Henna Virkkunen, the European Commission's Executive Vice-President for Tech Sovereignty, commented that the Commission was "holding X responsible for undermining users' rights and evading accountability."
The decision mandates X to submit a plan to the Commission detailing how it will align its practices with EU laws, or face further periodic fines. This action marks the Commission's first ruling on a platform's non-compliance with its Digital Services Act (DSA), one of the regulatory frameworks governing online services in the EU. The DSA outlines obligations for platforms concerning content, data, and advertising, while the Digital Markets Act establishes operational guidelines for companies to benefit consumers and competition.
US Response
US officials have expressed criticism regarding the European Union's regulatory actions. US Secretary of State Marco Rubio stated in a post on X that the European Commission's fine constitutes "an attack on X" and on "all American tech platforms and the American people by foreign governments." FCC Chair Brendan Carr also remarked that Europe was "taxing Americans to subsidise a continent held back by Europe's own suffocating regulations," alleging the Commission was targeting X due to its status as "a successful US tech company."
These comments align with remarks made by US Vice-President JD Vance, who previously criticized the EU amid rumors of the impending fine, suggesting the platform was being penalized "for not engaging in censorship."
Social media expert Matt Navarra commented that the fine indicated the EU's readiness to enforce its regulation of technology firms.