The European Union has imposed a €120 million (US$140 million) fine on Elon Musk’s social media platform X, citing violations related to the “deceptive design” of its blue checkmark verification system. The ruling, announced on Friday by the European Commission, highlights concerns that allowing users to purchase verified checkmarks exposes individuals to impersonation and scam risks.
Under the EU’s Digital Services Act (DSA), social media platforms are prohibited from misrepresenting user verification. The Commission determined that X’s paid checkmark program, which permits anyone to obtain a “verified” badge, makes it difficult for users to distinguish authentic accounts from impersonators. According to EU regulators, this vulnerability has led to confusion, fraud, and even financial market impacts, such as temporary fluctuations in stock prices due to parody accounts mimicking major brands.
In addition to the blue checkmark issue, the EU found that X failed to provide researchers with adequate access to public data and lacked transparency in its advertisement repository. These breaches compounded the platform’s non-compliance with the DSA, which governs digital services and online platform accountability across the European Union.
The fine comes two years after the EU began investigating X following Musk’s acquisition of Twitter in 2022 and subsequent rebranding. Musk’s initial rollout of purchasable blue checkmarks replaced the platform’s previous verification system, which assigned checkmarks selectively to confirm authenticity and prevent impersonation. The new model quickly drew criticism as parody and fraudulent accounts exploited the system.
Musk has responded critically to EU regulations, describing preliminary findings as “misinformation” and accusing regulators of censoring speech. In a show of support, U.S. Vice President JD Vance posted on X urging the European Union to avoid “attacking American companies over garbage.” Musk also reshared this post, signaling his resistance to the fine and ongoing scrutiny.
X’s parent company, xAI, responded to requests for comment with a statement reading “Legacy Media Lies,” which appeared automated. The company has undergone significant operational changes under Musk, who has emphasized restructuring the platform and integrating AI-driven initiatives.
The ruling is expected to influence how social media companies operating in Europe handle verification, transparency, and public data access. Analysts note that the EU’s action could set a precedent for stricter enforcement of the DSA, potentially impacting platforms that monetize trust and user identity.
