The European Union has fined Elon Musk’s social media platform, X, €120 million (£105 million) for its handling of blue verified badges, drawing sharp criticism from the United States.
The European Commission claimed that allowing users to pay for a blue checkmark misleads the public, as X does not “meaningfully verify” account identities. According to the Commission, this system exposes users to scams, impersonation fraud, and other manipulative activities.
In response, the US Federal Communications Commission (FCC) accused the EU of targeting X simply because it is “a successful US tech company.” Brendan Carr, FCC chair, criticized Europe for “taxing Americans to subsidize a continent held back by its own strict regulations,” echoing sentiments expressed by US Vice President JD Vance. Vance added that the EU seemed to be punishing X for “not engaging in censorship,” arguing that regulators should support free speech instead.
Social media expert Matt Navarra noted that the EU’s fine reflects not just punishment but also a statement about its commitment to regulating tech companies.
EU Concerns Beyond Blue Ticks
The EU also highlighted X’s lack of transparency in advertising and refusal to provide researchers with access to public data. The Commission said the fine considered the severity, duration, and impact of these violations on EU users. Henna Virkkunen, the EU’s executive vice-president for tech sovereignty, stated that X was being held accountable for undermining user rights and evading responsibility.
X must now explain how it will comply with EU regulations or face ongoing fines. This marks the EU Commission’s first enforcement action under the Digital Services Act (DSA), which outlines content, data, and advertising obligations for platforms. The DSA works alongside the Digital Markets Act, which governs fair competition and consumer protection in digital markets.
Musk’s Blue Tick Overhaul
After acquiring Twitter in late 2022, Elon Musk overhauled the verification system. Previously, verified badges required proof of identity, but the new system links blue checks to X’s Premium subscription, allowing users to pay for verification. Requirements include a display name, profile picture, active account status, and a verified phone number, with restrictions against spam or misleading activity.
Musk’s aim was to increase subscriptions, boost revenue, and reduce bots. However, the approach sparked controversy, with warnings that it could expose users to scams, fake accounts, and misleading content. Navarra explained that verification is typically a trust signal, not a paid transaction, but X reversed this principle, which led the EU to intervene.
