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EU imposes €120m fine on X over blue tick verification
The European Commission has penalized Elon Musk's social media platform X with a €120 million (£105 million) fine, accusing it of misleading users through its paid verification system. The decision has sparked a sharp backlash from U.S. officials, who argue the move targets American tech companies unfairly.
Deceptive practices and user risks
The Commission stated that X's blue tick system, which allows users to pay for verification, fails to adequately confirm account owners' identities. This, it claims, exposes users to scams, impersonation, and manipulation by malicious actors.
"This deception puts users at risk of fraud and other harmful activities," the Commission said in its ruling.
U.S. officials condemn the fine
Brendan Carr, chair of the U.S. Federal Communications Commission (FCC), accused the EU of singling out X because it is a "successful U.S. tech company." He argued that Europe was effectively taxing American businesses to support its own regulatory framework.
U.S. Vice President JD Vance echoed these sentiments, claiming the platform was being penalized "for not engaging in censorship." He urged the EU to "support free speech instead of attacking American companies over trivial issues."
Broader compliance failures under EU law
Beyond the blue tick controversy, the Commission found X non-compliant with transparency requirements for advertisements and restrictions on researcher access to public data. The fine reflects the severity and duration of these violations, as well as their impact on EU users.
Henna Virkkunen, the Commission's executive vice-president for tech sovereignty, stated that X was being held accountable for "undermining users' rights and evading accountability."
"Deceptive blue checkmarks, hidden ad information, and blocked researchers have no place in the EU," Virkkunen said.
Next steps and regulatory context
X must now outline how it will align its practices with EU laws or face additional penalties. This ruling marks the first enforcement action under the Digital Services Act (DSA), a regulatory framework governing content, data, and advertising for online platforms operating in the EU.
The DSA, alongside the Digital Markets Act, aims to ensure fair competition and consumer protection. However, these rules have faced criticism from U.S. leaders, who warn against excessive government oversight of tech companies.
Musk's verification overhaul and industry reaction
Musk introduced the paid verification system after acquiring Twitter (now X) in late 2022, replacing a previous model that required identity verification. Under the new system, users pay a monthly fee for a blue tick, provided their account meets basic criteria such as activity and a confirmed phone number.
Critics, including social media analyst Matt Navarra, argue the change transformed verification from a "trust signal" into a transactional feature. Navarra told the BBC that X's lack of rigorous validation made it an "easy target" for regulators scrutinizing deceptive design in social media.
"There's no meaningful ID check, and that's where the EU has drawn the line," Navarra said.
