News: Elon Musk-owned X was fined €120 million by the European Commission for violating transparency rules under the Digital Services Act.
About EU Fine on X
- The European Commission imposed a €120 million fine on X after a two-year investigation found violations of transparency requirements under the Digital Services Act(DSA).
- This is the first penalty issued under the DSA.
- Reasons for the Fine
- Deceptive blue checkmark design: X allowed users to purchase a blue tick without meaningful identity verification, which misled users and exposed them to scams and impersonation risks.
- Lack of advertising transparency: The ad repository contained barriers such as processing delays and missing information about the entity paying for ads, limiting public and researcher scrutiny.
- Failure to provide researcher access: X restricted eligible researchers from independently accessing public data, preventing proper assessment of systemic risks.
About the Digital Services Act (DSA)
- The Digital Services Act is an EU regulation that came into force in 2022 and applies directly across member states to regulate digital services, online safety, and accountability of platforms.
- Aim: The act aims to protect users’ fundamental rights and ensure safer digital spaces through stronger accountability rules.
- Goal: Its goal is to create a fair digital market that supports innovation and competitiveness while ensuring responsible platform operations.
- Key Features
- Faster removal and user challenge system: Platforms must quickly remove illegal or harmful content and allow users to challenge takedown decisions.
- Greater responsibility for VLOPs (Very Large Online Platforms): VLOPs, defined as platforms with more than 45 million EU users, must follow stricter rules and conduct systemic risk assessments under the DSA.
- Direct supervision by European Commission: Enforcement is centrally monitored to avoid evasion at member-state levels.
- Algorithm and advertisement transparency: Platforms must explain how algorithms work, ensure clear ad identification, and avoid personalised ads for minors.
- Enforcement: Non-compliance can lead to fines of up to 6% of global annual turnover, and companies unwilling to comply cannot operate in the EU.
