"The fine, the equivalent of about $140 million and the first issued under the European Union's DSA, is linked to the "deceptive design of its 'blue checkmark', the lack of transparency of its advertising repository, and the failure to provide access to public data for researchers," the EU release states. The 'blue checkmark' is front-and-center in the ruling, stating that the once-free, now-paid checkmark deceives users and violates the DSA requirement to prohibit deceptive design practices."
"'While the DSA does not mandate user verification, it clearly prohibits online platforms from falsely claiming that users have been verified, when no such verification took place,' the ruling states. The ruling also cites a lack of transparency within X's ad repository, stating that it has limited information about the content of advertisements and who is paying for them, which makes it difficult for researchers and the public to scrutinize. X also failed to provide researchers access to public data as required by DSA."
The European Commission fined Elon Musk-owned X €120 million for breaching EU Digital Services Act transparency requirements. The penalty targets the deceptive design of the paid blue checkmark, limited transparency in X's advertising repository, and failure to grant researchers access to public data. The ruling says the paid checkmark deceives users, hinders verification of authentic accounts, and increases scam risk. The ad repository lacked detailed information about ad content and payers, impairing scrutiny. X must submit blue checkmark plans within 60 business days and address other EU concerns within 90 days.
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