European Union regulators have fined Elon Musk's social media platform X 120 million euros ($210 million) for violating the bloc's digital regulations, which they say could expose users to scams and manipulation.
The European Commission issued this decision following an investigation launched two years ago against X under the 27-nation bloc's Digital Services Act, also known as the DSA.
This is the first time the EU has issued a so-called non-compliance decision since the DSA came into effect.
The expansive rulebook requires platforms to take greater responsibility for protecting European users and cleaning up harmful or illegal content and products on their sites, a move that risks heavy fines.
The Commission said it was punishing X, formerly known as Twitter, for violating the DSA's transparency requirements in three different ways.
This decision is likely to anger President Donald Trump, whose administration has strongly criticized digital regulations, complaining that Brussels is targeting US tech companies and vowing retaliation.
The company did not immediately respond to an email request for comment.
'Deceptive Design Practices'
EU regulators outlined their allegations mid-2024 when they released the initial results of their investigation into X.
Regulators said X's blue checkmarks violate rules due to "deceptive design practices" and could make users vulnerable to scams and manipulation.
Before Musk purchased X, when it was formerly known as Twitter, checkmarks were common verification badges on social media and were mostly reserved for celebrities, politicians, and other influential accounts.
After purchasing it in 2022, the site began offering badges to anyone willing to pay $US8 per month for one.
This means X doesn't properly verify who is behind the accounts, making it "difficult for users to assess the authenticity of the accounts and content they engage with," the Commission said in its announcement.
Ad Database Scrutinized
Regulators said X also failed to meet transparency requirements for its ad database.
Platforms in the EU are required to provide a database of all their digital advertisements, including details of who paid for them and the target audience, to help researchers detect scams, fake advertising, and coordinated influence campaigns.
But the Commission said X's database is vulnerable to access barriers such as design features and "excessive processing delays."
Regulators also said that X also imposes "unnecessary barriers" for researchers trying to access public data, hindering research on systemic risks facing European users.
"Deceiving users with blue checkmarks, hiding information on aids, and excluding researchers have no place online in the EU," Henna Virkkunen, the EU's executive vice-president for tech sovereignty, security, and democracy, said in a prepared statement.