EU Fines Elon Musk's X €120m Over Digital Services Act Violations
In This Article
HIGHLIGHTS
- The EU fined Elon Musk's platform X €120m for breaching the Digital Services Act, marking the first such ruling under the new laws.
- The fine addresses deceptive blue tick verification, lack of advertising transparency, and restricted data access for researchers.
- US officials, including Secretary of State Marco Rubio, criticized the EU's actions as an attack on American tech companies.
- The European Commission demands X comply with EU laws or face further fines, emphasizing accountability and user rights.
- The ruling could escalate tensions between the EU and US over tech regulation and digital sovereignty.
In a landmark decision under the European Union's new digital regulations, Elon Musk's social media platform, X, has been fined €120 million (£105 million) for breaching the Digital Services Act (DSA). This ruling, announced on Friday, highlights significant issues with the platform's verification processes, advertising transparency, and data access policies.
Breaches and Fines
The European Commission's investigation, which spanned two years, concluded that X's practice of allowing users to purchase blue tick verification badges was deceptive. This feature, according to the Commission, misleads users and exposes them to potential scams and impersonation frauds. The fine also addresses X's failure to maintain transparency in advertising practices and its restriction of data access for researchers monitoring political content and other contentious issues.
The penalties are divided into three parts: €45 million for the misleading verification system, €35 million for advertising regulation breaches, and €40 million for limiting data access. This decision is the first enforcement action under the DSA, which came into effect in 2023, setting a precedent for future regulatory measures against tech giants.
US Criticism and Response
The ruling has sparked a strong reaction from US officials, who perceive it as an attack on American technology firms. US Secretary of State Marco Rubio and FCC Chair Brendan Carr have both criticized the EU's actions, accusing the bloc of targeting successful US companies and stifling free speech. "The European Commission's fine isn't just an attack on X; it's an attack on all American tech platforms," Rubio stated, with Musk echoing his sentiments.
EU's Stance on Tech Accountability
Henna Virkkunen, the European Commission's executive vice-president for tech sovereignty, emphasized the importance of holding platforms accountable. "Deceiving users with blue checkmarks, obscuring information on ads, and shutting out researchers have no place online in the EU," she asserted. The Commission has mandated that X outline how it plans to comply with EU regulations or face further fines.
WHAT THIS MIGHT MEAN
The EU's decision to fine X could lead to increased tensions between the United States and Europe over digital regulation and tech sovereignty. As the first enforcement of the DSA, this case sets a significant precedent, potentially influencing how other tech companies operate within the EU. Experts suggest that this could prompt a reevaluation of verification and transparency practices across social media platforms globally.
Moving forward, X must navigate the complex landscape of international regulations while addressing the EU's demands for compliance. Failure to do so could result in additional fines and further strain US-EU relations. As the digital landscape continues to evolve, the balance between regulation and innovation remains a critical issue for policymakers and tech companies alike.
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EU Fines Elon Musk's X €120m Over Digital Services Act Violations
In This Article
Himanshu Kaushik| Published HIGHLIGHTS
- The EU fined Elon Musk's platform X €120m for breaching the Digital Services Act, marking the first such ruling under the new laws.
- The fine addresses deceptive blue tick verification, lack of advertising transparency, and restricted data access for researchers.
- US officials, including Secretary of State Marco Rubio, criticized the EU's actions as an attack on American tech companies.
- The European Commission demands X comply with EU laws or face further fines, emphasizing accountability and user rights.
- The ruling could escalate tensions between the EU and US over tech regulation and digital sovereignty.
In a landmark decision under the European Union's new digital regulations, Elon Musk's social media platform, X, has been fined €120 million (£105 million) for breaching the Digital Services Act (DSA). This ruling, announced on Friday, highlights significant issues with the platform's verification processes, advertising transparency, and data access policies.
Breaches and Fines
The European Commission's investigation, which spanned two years, concluded that X's practice of allowing users to purchase blue tick verification badges was deceptive. This feature, according to the Commission, misleads users and exposes them to potential scams and impersonation frauds. The fine also addresses X's failure to maintain transparency in advertising practices and its restriction of data access for researchers monitoring political content and other contentious issues.
The penalties are divided into three parts: €45 million for the misleading verification system, €35 million for advertising regulation breaches, and €40 million for limiting data access. This decision is the first enforcement action under the DSA, which came into effect in 2023, setting a precedent for future regulatory measures against tech giants.
US Criticism and Response
The ruling has sparked a strong reaction from US officials, who perceive it as an attack on American technology firms. US Secretary of State Marco Rubio and FCC Chair Brendan Carr have both criticized the EU's actions, accusing the bloc of targeting successful US companies and stifling free speech. "The European Commission's fine isn't just an attack on X; it's an attack on all American tech platforms," Rubio stated, with Musk echoing his sentiments.
EU's Stance on Tech Accountability
Henna Virkkunen, the European Commission's executive vice-president for tech sovereignty, emphasized the importance of holding platforms accountable. "Deceiving users with blue checkmarks, obscuring information on ads, and shutting out researchers have no place online in the EU," she asserted. The Commission has mandated that X outline how it plans to comply with EU regulations or face further fines.
WHAT THIS MIGHT MEAN
The EU's decision to fine X could lead to increased tensions between the United States and Europe over digital regulation and tech sovereignty. As the first enforcement of the DSA, this case sets a significant precedent, potentially influencing how other tech companies operate within the EU. Experts suggest that this could prompt a reevaluation of verification and transparency practices across social media platforms globally.
Moving forward, X must navigate the complex landscape of international regulations while addressing the EU's demands for compliance. Failure to do so could result in additional fines and further strain US-EU relations. As the digital landscape continues to evolve, the balance between regulation and innovation remains a critical issue for policymakers and tech companies alike.
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