X (formerly Twitter) has been fined €120 million by the European Union for breaking the Digital Services Act (DSA). Under the DSA, which mandates that major online platforms guarantee accountability and openness, the fine is the first non-compliance ruling.
The European Commission claims that X's blue checkmark verification system is dishonest since it permits anyone to pay for verification without doing adequate identity checks.
Users may be duped into thinking their accounts are legitimate as a result, leaving them vulnerable to fraud and manipulation.
Additionally, the commission discovered that X's advertising repository lacked openness, which made it challenging for the public and researchers to identify coordinated influence campaigns and scams.
X has also been charged with preventing researchers from accessing public data, which is necessary to investigate systemic hazards under the DSA.
The business has ninety days to present an action plan on data access and advertising transparency, and sixty working days to resolve the blue checkmark issue.
European Commission for Technological Sovereignty, Security, and Democracy Executive Vice President Henna Virkkunen stated: "Our purpose is not to apply the heaviest penalties. We are here to ensure that our digital legislation is enforced. The DSA protects users and restores trust in the online environment."
The X owner Elon Musk posted a single word in response to the heavy fine: "Bullshit." To avoid further penalties, the corporation has been given time to comply with the regulations.
US officials have criticised the EU's action, claiming it targets US corporations. European officials, however, insist that the regulations are equally applicable to all businesses, including non-US enterprises such as TikTok.