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HomeGadgetElon Musk's X Hit With $140M Nice Over 'Misleading' Blue Checkmark Design

Elon Musk’s X Hit With $140M Nice Over ‘Misleading’ Blue Checkmark Design

Elon Musk’s social media web site X, previously Twitter, is below fireplace within the EU following a two-year investigation into the platform’s practices. On Friday, the European Fee slapped the corporate with a 120 million euro ($140 million) nice for a number of breaches of EU laws, together with what it calls the “misleading design” of X’s blue checkmark.

“On X, anybody will pay to acquire the ‘verified’ standing with out the corporate meaningfully verifying who’s behind the account, making it troublesome for customers to guage the authenticity of accounts and content material they have interaction with,” mentioned the Fee in a press launch. “This deception exposes customers to scams, together with impersonation frauds, in addition to different types of manipulation by malicious actors.”

Regulators discovered X to be in violation of the EU’s Digital Providers Act, which governs the habits of on-line platforms working within the area. The Act doesn’t require on-line companies to confirm folks’s identities, however does oblige them to not use misleading design practices. 

That is the newest chapter in an ongoing energy battle between Europe and Silicon Valley tech firms, which regularly discover the EU’s strategy to regulation overly burdensome. The connection has solely change into extra strained following repeated criticisms from the present US presidential administration, which accuses the bloc of unfairly concentrating on and censoring US firms.

X did not reply to a request for remark concerning the nice, however Musk did repost an X submit from FCC Chairman Brendan Carr that mentioned: “As soon as once more, Europe is fining a profitable US tech firm for being a profitable US tech firm. Europe is taxing Individuals to subsidize a continent held again by Europe’s personal suffocating laws.”


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A scarcity of transparency

Different breaches of the Digital Providers Act that led to the nice embrace X’s failure to fulfill the EU’s transparency and accessibility necessities relating to its advert repository and its failure to offer researchers with entry to public information.

TikTok dodged an analogous nice on Friday, after the Fee accepted the corporate’s commitments to bettering promoting transparency. 

The European Fee’s tech chief, Hanna Virkkunen, defended the Digital Providers Act and the choice to problem X a nice, stating that the DSA protects customers and supplies researchers with a way to uncover potential threats. 

“The DSA restores belief within the on-line atmosphere,” Virkkunen mentioned. “With the DSA’s first non-compliance choice, we’re holding X chargeable for undermining customers’ rights and evading accountability.”

The choice to nice X was praised by Imran Ahmed, CEO of the Heart for Countering Digital Hate, which X tried to sue again in 2023 over its makes an attempt to check the platform.

“Researchers have to be free to check how highly effective platforms form our info atmosphere,” he mentioned. “X has tried to cover the way it manipulates the algorithm and empowers hostile states, scammers and extremists. Now, European regulators have confirmed that this habits is illegal, and that transparency is just not non-obligatory if X needs to proceed doing enterprise in Europe.”


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