The European Commission has levied a substantial €120 million fine against X, formerly known as Twitter, for serious breaches of transparency obligations under the landmark Digital Services Act (DSA). The penalty, announced Friday, highlights growing concerns regarding the platform’s governance and its potential to mislead users and obstruct independent oversight of its operations.
The Commission’s investigation focused on three key areas where X failed to comply with the DSA’s requirements. Critically, the platform’s implementation of the “blue checkmark” verification system has been deemed intentionally misleading. The Commission argues that the design fosters a false impression of account verification, allowing users to purchase the status without undergoing a rigorous verification process. This practice, officials stated, diminishes user trust and significantly increases their vulnerability to scams and disinformation as the perception of credibility is artificially propped up.
Beyond the blue checkmark controversy, the Commission flagged X’s ad repository as deficient in transparency and accessibility. The platform’s failure to adequately disclose key information about advertisements – including content details, themes and the identity of the paying advertiser – has been identified as a significant impediment to independent research and public scrutiny of online advertising practices. The lack of this data hampers efforts to assess potential risks associated with political and commercial advertising campaigns, raising concerns about potential manipulation and undue influence.
The fine signals a clear message from Brussels aimed at ensuring platforms operate responsibly and adhere to the principles of the DSA. While X now has 60 days to implement corrective measures, the considerable penalty underlines the EU’s resolve to enforce the new regulations, potentially setting a precedent for other social media giants. Critics contend that a fine of this size, while significant, may not be enough to fundamentally alter X’s behavior and that continued, robust monitoring of the platform’s compliance will be essential moving forward. The case also underscores the inherent challenges in balancing the need for platform transparency with the protection of commercially sensitive information and the limitations of reliance on self-regulation within the digital landscape.
