The European Union has fined Elon Musk’s social media platform X €120m over its paid blue tick verification system, prompting sharp criticism from senior US officials who say the penalty amounts to an attack on American technology companies.
Basis of the European Commission’s Decision
The European Commission said X misleads users by allowing accounts to purchase a blue verified check mark without “meaningfully verifying” the identity of the account holder. The regulator said this creates a risk of deception and enables scams, including impersonation fraud and broader manipulation by malicious actors.
In addition to the verification system, the Commission said X failed to meet transparency requirements for advertising and did not provide researchers with access to public data. The regulator said the fine reflects the nature of the infringements, their seriousness in terms of the number of affected EU users, and their duration.
Henna Virkkunen, executive vice-president for tech sovereignty at the Commission, said the EU was holding X accountable for undermining user rights and evading oversight. She said deceptive verification, opaque advertising information, and blocking researcher access were not acceptable under EU law.
X must now inform the Commission how it will bring the contested practices into compliance with EU regulations or face additional, periodic fines.
Digital Services Act Enforcement Context
The decision marks the Commission’s first ruling on a platform’s non-compliance with the Digital Services Act, one of two regulatory frameworks governing online platforms in the EU. The DSA sets standards for content moderation, data access, and advertising transparency. The Digital Markets Act sets separate rules intended to govern competition and consumer protection.
These regulatory regimes have drawn growing scrutiny from US officials, who have warned against tighter oversight of technology firms operating in Europe.
Reaction From US Officials and Elon Musk
US Secretary of State Marco Rubio criticised the fine in a post on X, saying the decision was an attack not only on X but on American technology platforms more broadly. He said the days of censoring Americans online were over. Musk reposted Rubio’s comments and added his agreement.
Federal Communications Commission chair Brendan Carr accused the European Commission of singling out X because it is a successful US technology company. He said Europe was taxing American firms to subsidise what he described as economic constraints created by its own regulations.
US Vice-President JD Vance also criticised the anticipated fine earlier, saying he believed X was being punished for not engaging in censorship and argued that the EU should support free speech instead of targeting American companies.
Changes to X’s Verification System
Musk overhauled Twitter’s verification system after acquiring the company in late 2022. The previous model, which granted blue ticks after identity verification, was replaced with a system tied to X’s paid Premium subscription tier.
Under the new rules, users must pay a monthly fee to receive a blue checkmark. To qualify, an account must have a display name, profile photo, confirmed phone number, and recent activity within the previous 30 days. Accounts must also avoid misleading behaviour or spam activity.
The revised system was introduced to encourage subscriptions, increase platform revenue, and give verified accounts greater visibility in replies. It was also promoted as a tool to reduce bot activity.
The change drew criticism soon after its launch, with warnings that it could make impersonation easier and increase exposure to scams and misleading content.
Expert Assessment of the Verification Dispute
Social media analyst Matt Navarra said the Commission’s action reflected concerns over how the blue tick functions as a trust signal. He said verification on most platforms signals identity confirmation rather than a paid status.
He said X’s approach reversed that convention, noting that the system lacks rigorous identity checks and meaningful validation. He added that this made X a straightforward case for regulatory scrutiny over deceptive design.
Featured image credits: Kelly Sikkema via Unsplash
For more stories like it, click the +Follow button at the top of this page to follow us.