What's Happening?
The European Commission has imposed a fine of €120 million (approximately $140 million) on X, formerly known as Twitter, for violating the Digital Services Act (DSA). The fine addresses X's deceptive use of the 'blue checkmark' verification system, which
allows users to purchase verification without meaningful identity checks. This practice contravenes the DSA's requirement for transparency and prohibition of deceptive design practices. The Commission also cited X's lack of transparency in its advertising repository and failure to provide researchers access to public data. These breaches expose users to scams and impersonation fraud, while hindering research into systemic risks.
Why It's Important?
This penalty marks the first enforcement action under the DSA, highlighting the EU's commitment to regulating online platforms and ensuring transparency. The fine against X underscores the importance of protecting users from deceptive practices and misinformation. It also emphasizes the need for platforms to facilitate research into online risks, which is crucial for understanding and mitigating potential threats. The decision could influence other platforms to review their practices and align with regulatory standards, impacting how social media companies operate globally.
What's Next?
X has been given 60 days to address the issues related to the blue checkmark system and 90 days to respond with an action plan for improving transparency in advertising and public data access. Failure to comply could result in further sanctions, including fines up to 6% of global annual turnover. The outcome of X's response will be closely watched by other tech companies and regulators, potentially setting a precedent for future enforcement actions under the DSA.
