X fined €120m by EU after probe finds platform misled users with paid blue checkmarks

For some time, Mr Musk has been on a collision course with the European Commission over its long-running investigation into X. Picture: KIRILL KUDRYAVTSEV/AFP via Getty Images

The European Commission has issued a €120m fine to Elon Musk-owned social media giant X, the first of its kind for the bloc over breaches of its flagship online content laws.

The breaches by X include its “deceptive design” of the blue checkmark on the platform, its lack of transparency around advertising and its failure to provide public data to researchers.

It comes amid an escalating battle involving countries and social media platforms, with Ireland launching its own investigation into X and Australia set to ban social media for under-16s, while US vice president JD Vance has warned Europe it shouldn’t target X over “garbage”.

In announcing the fine against X following a two-year investigation, the European Commission said its blue checkmark for “verified” accounts “deceives users”.

“On X, anyone can pay to obtain the ‘verified' status without the company meaningfully verifying who is behind the account, making it difficult for users to judge the authenticity of accounts and content they engage with,” it said.

“This deception exposes users to scams, including impersonation frauds, as well as other forms of manipulation by malicious actors.” 

It also criticised X’s advertisement repository, which it said should be critical to detect scams, threat campaigns, coordinated information operations and fake adverts.

The Commission said X’s design features and access barriers hinder researchers’ ability to scrutinise the risks in its online ads.

It has given X 60 working days to present specific measures to address its breaches of the legislation regarding the blue checkmarks, and failure to comply could lead to “periodic penalty payments”.

The Commission’s executive vice president for tech sovereignty, security and democracy, Henna Virkkunen, added in a statement that deceiving users, obscuring information and shutting out researchers “have no place online in the EU."

For some time, Mr Musk has been on a collision course with the European Commission over its long-running investigation into X.

In December 2023, the Commission opened formal proceedings into whether X had breached its landmark Digital Services Act.

At that stage, it warned that if these findings were confirmed it could result in a fine of up to 6% of X’s total worldwide turnover.

Concerns had been raised about the pace at which investigations such as this one have progressed, and it comes against the backdrop of American pressure on the EU to lighten tech regulation under the Trump administration.

In a post to X on Thursday, Mr Vance said: “Rumors swirling that the EU commission will fine X hundreds of millions of dollars for not engaging in censorship. The EU should be supporting free speech not attacking American companies over garbage.”

Mr Musk replied with a "much appreciated” to the post by the American vice president. He also retweeted a post saying that the US Congress should enact a law allowing X to sue the European Commission in an American court to “head off this European censorship attempt”.