Elon Musk’s social media platform, X, has been hit with a massive €120 million (£105 million) fine. This is, of course, one of the biggest penalties ever imposed by the European Union. This penalty comes in response to complaints about the platform’s blue tick badges, which the EU has found confusing and misleading to consumers. The decision is representative of a slowly growing trend of heightened scrutiny towards technology firms and their regulatory obligations.
The fine was levied by the EU Commission, responding to how X eroded users’ rights and evaded scrutiny. Henna Virkkunen, the Finnish regulator’s new executive vice-president for tech sovereignty, said X’s measures erode competition. Third, she stressed, they are not in line with the EU framework. She noted that this type of deceptive behavior, especially through verification blue checkmarks and other tactics, cannot be accepted in digital environments.
“Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU.” – Henna Virkkunen
The Commission based its calculation of the fine on a number of important factors. They took into account the type and extent of violations, harm to impacted consumers, and the duration of these violations. The regulatory body is clearly intent on sending an unequivocal signal to tech companies. They should be held to higher standards and real accountability, and consider the rights of their users.
Commenting on the fine, U.S. Vice President JD Vance condemned the EU’s raid on X. As punishment, he said, the penalty “works.” It’s aimed at a select few companies that continue to resist doing the censorship bidding of governments that push discrimination. Vance’s comments highlight the fractious relationship that has developed between U.S. technology companies and European regulators.
“The EU should be supporting free speech, not attacking American companies over garbage.” – JD Vance
The fine signifies a notable escalation in the EU’s efforts to regulate technology companies amid rising concerns about misinformation, privacy, and user rights. The regulatory landscape is becoming increasingly complex. As a consequence, U.S. leaders are rightly sounding the alarm about foreign governments dictating tougher standards to American technology companies.
The EU has opened investigations into major tech companies to further enforce their rules. Consequently, platforms such as X find themselves in a hostile climate where compliance is key. Yet, this recent record fine demonstrates the rising tide of what is being expected of social media companies. They must double down on putting transparency and accountability front and center.