The European Commission has fined X a sum of 120 million euros for not adhering to the transparency requirements under the Digital Services Act (DSA).
This decision marks the first non-compliance action taken under the DSA. The commission identified issues related to how the platform manages its verification process, shortcomings in its advertising database, and barriers that prevent researchers from accessing public data.
The ‘blue checkmark’ system for verified accounts was deemed deceptive. Users can earn this mark by paying without undergoing thorough identity checks, which makes it hard for others to verify the authenticity of accounts or content posted online. The commission warned that this could lead users to fall victim to impersonation scams and other forms of cyber threats.
Issues with advertising transparency
The platform’s advertisement database was criticized for not providing clear and accessible information. Key details such as ad content, topic, and the legal entity funding them were missing or delayed, making it difficult for researchers and the public to monitor online advertisements for potential scams or coordinated misinformation campaigns.
X’s terms of service also restrict eligible researchers from independently accessing certain types of public data, imposing procedural hurdles that limit their ability to conduct meaningful research into systemic risks within the EU.
Timeline for compliance
The platform has been given a specific timeframe to address these issues. X must report on measures taken to improve its verification system within 60 working days and submit an action plan to resolve issues with advertising data access and researcher access within 90 working days.
Failure to meet the deadlines could result in further penalties.
The commission stressed that misleading verification, opaque advertising practices, and restricted data access are not acceptable under EU regulations. The DSA is intended to protect users and enable researchers to identify potential threats online.
