• The EU fines Elon Musk's X €120 million for violating digital services regulations.
• The fine addresses misleading practices related to blue verification checkmarks.
• X is also accused of failing to maintain an accessible ad repository.
• This is the EU's first fine issued under the Digital Services Act.
• The ruling prompts criticism from U.S. officials regarding perceived censorship.

The European Union has imposed a substantial fine of €120 million (approximately $140 million) on Elon Musk's social media platform X for breaching transparency obligations outlined in the Digital Services Act (DSA). According to the European Commission, X's practices, particularly the paid blue checkmark system, are considered deceptive as they do not meaningfully verify account authenticity, thereby exposing users to possible scams and manipulation by malicious actors. This penalty marks the first instance of enforcement under the DSA since its implementation in 2022, reflecting the EU's commitment to stricter regulations on Big Tech, according to BBC, India Times, and Reuters.

The European Commission highlighted multiple violations by X, including issues surrounding its advertising practices and failure to provide researchers with adequate access to public data. Regulators emphasized that “deceiving users with blue checkmarks, obscuring information on ads, and shutting out researchers have no place online in the EU,” as stated by Henna Virkkunen, the EU's executive vice-president for tech sovereignty, security, and democracy. The commission insisted on full compliance with the digital regulations to avoid similar penalties in the future, according to India Times and CBS News.

X is granted a period of 60 days to present a corrective plan addressing the deceptive blue checkmark system, and 90 days for resolving advertising repository issues. This ruling comes amid heightened tensions with U.S. government officials, who have criticized the EU's actions as an attack on American tech companies. U.S. Vice President JD Vance previously warned that such regulatory measures could be perceived as censorship rather than upholding digital integrity, a sentiment echoed by officials within the Trump administration, according to South China Morning Post and BBC.

The decision to impose a fine on X follows a comprehensive two-year investigation initiated by the EU in light of concerns about platform compliance with the DSA. The investigation revealed that X's paid verification system allows anyone to pay for a blue checkmark, undermining trust and verification on the platform. The EU's enforcement actions aim to ensure that digital firms uphold consumer rights and transparency policies, which are crucial for the digital marketplace, according to Reuters, India Times, and CBS News.