The BareStory
The European Commission has fined the social media company X, owned by X.ai, 120 million euros ($140 million). The decision on Friday concluded a two-year investigation under the European Union's Digital Services Act (DSA), a 2022 law regulating online platforms.
According to the European Commission, the fine was issued for several breaches, including what it called the "deceptive design" of the platform's blue checkmark verification system. The Commission also cited a lack of transparency in X's advertising repository and a failure to provide public data access for researchers. A Commission executive vice president, Henna Virkkunen, stated that the ruling holds the company responsible for undermining users' rights.
In response, Elon Musk stated that the European Union should be abolished to restore sovereignty to individual countries. Some U.S. officials also voiced opposition to the decision. According to one summary, Secretary of State Marco Rubio called the fine an attack on American tech platforms, while U.S. ambassador to the EU Andrew Puzder described it as "excessive" and an instance of "regulatory overreach." Puzder reportedly added that the Trump Administration opposes such regulations.
X has 60 days to inform the Commission of its plan to address the blue checkmark issue and 90 days to submit a plan for its ad repository and researcher data access. The Commission has stated that failure to comply could result in further periodic penalty payments. The summary noted that both X.ai and the Commission had been approached for comment.
How it may affect me
As a U.S. reader:
• The X platform may alter its verification system and advertising transparency for all users to comply with the EU's decision, affecting your user experience.
• Opposition from U.S. officials signals a potential divergence in tech policy, which could influence how American social media platforms are regulated in the future.
• This fine may increase tensions between the U.S. and EU over the regulation of American tech companies, potentially impacting transatlantic digital commerce and policy.
