In its first DSA penalty, EU fines X €120M for ‘deceptive’ blue check verification system

The European Commission has taken a significant step by imposing a hefty €120 million fine on X, the social media platform formerly known as Twitter, marking the first enforcement action under the Digital Services Act (DSA). The Commission criticized X for its blue checkmark verification system, which it claims misleads users into believing that accounts are authentically verified. Previously, the blue checkmark was a symbol of verification for notable figures such as journalists, celebrities, and politicians. However, since Elon Musk's acquisition of the platform, the criteria for obtaining a blue check have shifted dramatically. Now, it merely indicates that a user is subscribed to X Premium and meets specific eligibility requirements, including having a profile picture and linking their account to a phone number. The European Commission emphasized that X’s approach to the blue checkmark could deceive users and contravenes the DSA’s stipulation against deceptive design practices. The lack of rigorous verification processes means that anyone can purchase a verified status without proving their identity, complicating users' ability to discern the authenticity of accounts and content. In addition to the blue checkmark controversy, the Commission highlighted several other violations, including inadequate transparency in X’s advertising repository and restrictions that prevent researchers from accessing public data. These shortcomings hinder independent investigations into online advertising risks and systemic threats that could affect users. Henna Virkkunen, the European Commission's executive vice-president for Tech Sovereignty, Security and Democracy, stated that practices such as misleading verification and obscuring advertising information are unacceptable within the EU's digital landscape. X has been given 60 days to address the specific issues related to its verification system and 90 days to develop a comprehensive plan to improve transparency in ads and data access for researchers. If X fails to comply, it could face additional penalties, including fines of up to 6% of its global annual revenue.