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EU Slaps €120M Fine on X Over “Deceptive” Blue Checks

The European Commission (EC) has issued its first-ever fine under the Digital Services Act (DSA), targeting Elon Musk’s social media platform, X. The fine, totaling €120 million (around $140 million), addresses what regulators call a “deceptive” blue check verification system. This action highlights growing scrutiny over transparency and user trust on social media platforms, sparking questions about the future of digital identity verification.

Credit: Bryce Durbin

Under the current system, the blue checkmark no longer reflects verified identity. Instead, it simply signals that a user subscribes to X Premium and meets certain basic requirements, such as linking a phone number and having a profile picture. According to the EC, this change misleads users about the authenticity of accounts they interact with.

What the Commission Called “Deceptive Design”

The EU described X’s blue checkmark system as a “deceptive design practice.” Previously, Twitter—before Musk’s acquisition—issued verified badges to journalists, celebrities, politicians, and public figures after confirming their identities. This verification process allowed users to trust information sources and interact safely online.

Now, anyone meeting the minimal criteria can purchase a blue checkmark. The Commission stated that this undermines the purpose of verification, making it difficult for users to assess which accounts are genuine. “X’s use of the ‘blue checkmark’ for ‘verified accounts’ deceives users,” the statement read.

Other Breaches Under the DSA

The €120 million fine isn’t just about blue checks. The EC also flagged X for failing to provide transparency in its advertising repository and for denying researchers access to publicly available data. Both are core obligations under the DSA, designed to hold platforms accountable for content moderation, data access, and the prevention of misleading practices.

By breaching these transparency obligations, X risks eroding trust among European users, policymakers warn. The fine marks a major test case for the DSA, which came into effect to regulate online platforms across the European Union.

The Shift From Verification to Subscription

When Musk acquired Twitter in 2022, the platform gradually transformed verification from a marker of credibility into a paid subscription feature. As of 2023, the blue check signifies an X Premium membership rather than verified identity.

This shift has sparked criticism from regulators, journalists, and users alike. Experts argue that paid verification can amplify misinformation, as anyone—including impersonators—can obtain a verified badge without meaningful scrutiny.

Implications for Users and Advertisers

For everyday users, this change blurs the line between authentic and potentially misleading accounts. Advertisers, too, may face increased risk, as their content could appear alongside unverified or deceptive accounts.

Digital safety advocates argue that the EC’s ruling sends a strong signal that platforms must prioritize transparency and protect user trust over monetization. The fine underscores that regulatory oversight is intensifying across Europe, especially regarding paid features that affect public perception.

X’s Response to the Fine

X has yet to release an official response to the €120 million penalty. Elon Musk has previously defended the blue check subscription model, framing it as a way to democratize verification. However, regulators maintain that the design’s lack of clarity constitutes a violation of DSA rules.

Industry analysts suggest that X may need to rethink its verification and transparency practices in Europe or face additional fines. Observers also expect other social media platforms to closely monitor the ruling for precedent.

Why the EU Is Cracking Down

The EC’s enforcement reflects the EU’s broader push to regulate tech giants and ensure accountability online. The DSA empowers regulators to impose hefty fines for violations, particularly around misleading design practices and opaque content moderation.

By penalizing X, the EU is signaling that even well-established social media companies must align their features with transparency requirements, particularly when changes affect user trust.

Lessons for Social Media Platforms

This case is a cautionary tale for platforms that monetize verification or premium features. Experts say clarity, transparency, and robust verification processes are now more critical than ever. Failure to comply with the DSA can lead not only to financial penalties but also to reputational damage in the European market.

Platforms like X must balance monetization strategies with legal obligations and user trust. Missteps in verification, advertising transparency, or data sharing could invite additional scrutiny from regulators.

What This Means for the Future

The €120 million fine sets a clear precedent under Europe’s DSA, marking the start of stricter oversight for tech companies. Social media users across the EU may see changes in how platforms implement verification, subscription services, and transparency measures.

Regulators are likely to continue monitoring X and other major platforms closely, emphasizing accountability and user protection. Analysts predict this ruling could reshape the verification landscape across multiple social media networks.

Global Ripple Effects

Though this fine applies to X in Europe, the impact could extend globally. Platforms operating in multiple regions may adjust verification practices to avoid similar regulatory challenges. The ruling could also prompt debates in other countries considering stricter digital regulations.

For users and creators, this may translate into clearer signals of authenticity online, while tech companies must navigate the balance between revenue generation and regulatory compliance.

Trust vs. Monetization

X’s €120 million DSA fine underscores a growing tension in social media: the conflict between monetization and trust. The EU’s action demonstrates that transparency and user protection are non-negotiable, and that deceptive design practices will have tangible consequences.

As digital platforms evolve, one thing is clear: blue checkmarks may never again be purely about status—they are now at the center of regulatory battles, user trust, and global conversations about online authenticity.