Elon Musk's X Social Media Platform Fined €120 Million by EU for Breaches of Digital Laws
The European Commission has fined Elon Musk's social media platform, X, a staggering €120 million for violating new EU digital laws. This ruling marks a significant clash between the tech giant and the European regulatory body, potentially setting the stage for a heated debate involving prominent figures like Donald Trump and the US government. The investigation, spanning two years, uncovered multiple breaches, including deceptive verification practices and a lack of transparency in advertising.
The EU's Digital Services Act (DSA) mandates that tech companies disclose a public list of advertisers to prevent illegal scams, fake ads, and coordinated campaigns during political elections. X failed to meet this requirement, resulting in a €40 million fine for data access breaches related to research. Additionally, the platform was penalized for introducing a 'verification' blue tick that users could purchase, causing confusion about account authenticity, and for €35 million in ad regulation violations.
This ruling comes as a wake-up call for tech platforms, emphasizing the importance of transparency and accountability. The EU's executive vice-president for tech regulation, Henna Virkkunen, stated, 'With the DSA's first non-compliance decision, we are holding X responsible for undermining users' rights and evading accountability. Deceiving users with blue checkmarks, obscuring information on ads, and shutting out researchers have no place online in the EU.'
The fine also highlights the EU's determination to regulate US tech giants, with 25 companies, including non-US entities like TikTok, falling under the DSA's jurisdiction. Musk, who is on track to become the world's first trillionaire, has 90 days to devise an action plan to address the fine. However, he retains the right to appeal any EU ruling, as evidenced by past cases involving Apple. Meanwhile, the EU has secured commitments from TikTok to enhance transparency in advertising, addressing concerns raised in May.
