European Commission Imposes Fine on X for Digital Services Regulation Violations
The European Commission has issued a fine of €120 million to X, the social media platform formerly known as Twitter, owned by Elon Musk. This penalty is attributed to X's failure to comply with key transparency obligations within the framework of the Digital Services Regulation (DSA). The violations include shortcomings in the advertisement repository, limited access to data for researchers, and issues surrounding the design of the platform's paid verification service, commonly referred to as the blue check.
Significance of the Fine
This fine marks the first enforcement action taken against a major digital platform under the DSA. While €120 million may appear modest compared to past penalties imposed on companies like Google—where fines have reached billions—the amount is notable in the context of X's operations. The fine comprises €45 million for misleading users about account verification via the blue check, €35 million for advertising transparency failures, and €40 million for restricting researcher access to data.
Context of the Fine
The sanction follows recent U.S. pressure on the European Union to reconsider its digital regulatory framework in light of prospective trade negotiations regarding steel and aluminum. Henna Virkkunen, Vice President of the Commission, emphasized that the DSA is not about censorship but focuses on improving transparency and user trust regarding how platforms, including X, operate.
Concerns have arisen around the verification process on X, where users might misinterpret the blue check as an indicator of authenticity. Virkkunen highlighted that clarity and transparency are essential for user confidence in the platform.
Investigation Timeline and Implications
The investigation into X commenced nearly two years ago, with the Commission reaching a preliminary conclusion in July 2024 regarding the platform's non-compliance with DSA standards. Virkkunen acknowledged the duration as significant but stressed the necessity for a solid legal foundation for the imposed fine.
This penalty represents a notable escalation in regulatory action against Musk, who has engaged in public disagreements with European leaders, particularly concerning the transparency of his platform during election periods. A Commission spokesperson previously noted the importance of operating within legal frameworks to avoid misuse in electoral processes.
Responses from U.S. Officials
The fine has sparked outrage among U.S. officials, including Secretary of State Marco Rubio, who criticized the regulation as an attack on American tech platforms and their users. Rubio asserted that the era of censorship on the internet was coming to an end.
TikTok Reaches Agreement with the European Commission
In contrast to X, TikTok, owned by the Chinese company Bytedance, has successfully addressed concerns raised by the Commission regarding advertising transparency. The social media platform has presented binding commitments to resolve all issues highlighted during the Commission's investigation, which emphasizes the ongoing scrutiny of major digital platforms under the DSA.
The Digital Services Regulation Framework
The DSA, implemented in phases beginning in 2023, requires large digital platforms to maintain an accessible and searchable advertising repository. This requirement aims to enable regulatory bodies and civil society to monitor advertising practices, detect scams, and mitigate challenges related to disinformation.
