Elon Musk’s controversial decision to scrap Twitter’s verified blue checkmarks and instead sell access to them might come with a hefty cost.
On Friday, the European Commission announced a $140 million fine against X, formerly Twitter, for violating the EU’s laws meant to rein in social media services.
Allegedly, X breached the “transparency obligations” under the EU’s Digital Services Act, which went into effect in 2022 and was designed to protect consumers and prevent abuse, illegal activities and disinformation online.
Back in Dec. 2023 —and over a year after Musk bought Twitter— the European Commission launched an investigation into the social media platform for potential violations, following multiple warnings, urging the billionaire to follow the DSA.
On Friday, the Commission announced the results from the investigation, which found issues with Musk’s decision to scrap the verified blue checkmarks in favor of a paid system. Originally, the blue checkmarks were reserved to verify the identities of celebrities, politicians and other major figures. But after buying Twitter, Musk opened access to the blue checkmark to anyone, so long as they paid a subscription.
The Commission found the result can “deceive users,” amounting to a violation of the DSA’s prohibition against deceptive design practices.
Get Our Best Stories!
Your Daily Dose of Our Top Tech News
Sign up for our What’s New Now newsletter to receive the latest news, best new products, and expert advice from the editors of PCMag.
Sign up for our What’s New Now newsletter to receive the latest news, best new products, and expert advice from the editors of PCMag.
By clicking Sign Me Up, you confirm you are 16+ and agree to our Terms of Use and Privacy
Policy.
Thanks for signing up!
Your subscription has been confirmed. Keep an eye on your inbox!
“On X, anyone can pay to obtain the ‘verified’ status without the company meaningfully verifying who is behind the account, making it difficult for users to judge the authenticity of accounts and content they engage with,” the Commission said. “This deception exposes users to scams, including impersonation frauds, as well as other forms of manipulation by malicious actors. While the DSA does not mandate user verification, it clearly prohibits online platforms from falsely claiming that users have been verified, when no such verification took place.”
The Commission is also fining X for allegedly placing barriers to the platform’s online ad repository, making it difficult for researchers and watchdog groups to detect scams over the social media service. The regulator also flagged X for failing “to provide researchers access to public data,” calling it another obligation under the DSA.
However, Musk could appeal the ruling, leading to a court battle. Back in July 2024, he vowed to do so after the Commission released its preliminary findings, calling the paid checkmarks a potential DSA violation.
Recommended by Our Editors
In response, Musk tweeted back at the time: “The DSA IS misinformation!” Others have also defended X making the blue checkmark a paid perk, saying it opened up the verified badge to all users, rather than only the “elite.”
The $140 million fine is small relative to Musk’s total net worth, which has been estimated at $500 billion. Still, the Commission noted, “failure to comply with the non-compliance decision may lead to periodic penalty payments.”
The regulator has given X 60 days to notify the Commission about how it’ll address the violations concerning the blue checkmarks. X didn’t immediately respond to a request for comment. In the meantime, the EU is also investigating the platform for violations related to lax content moderation. Although Elon Musk has been prioritizing X to focus on free speech, critics have also blasted the platform’s policies for fueling misinformation.
About Our Expert
Michael Kan
Senior Reporter
Experience
I’ve been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I’m currently based in San Francisco, but previously spent over five years in China, covering the country’s technology sector.
Since 2020, I’ve covered the launch and explosive growth of SpaceX’s Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I’ve combed through FCC filings for the latest news and driven to remote corners of California to test Starlink’s cellular service.
I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. Earlier this year, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.
I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I’m now following how President Trump’s tariffs will affect the industry. I’m always eager to learn more, so please jump in the comments with feedback and send me tips.
Read Full Bio
