First fine for non-compliance with the DSA: 120 million euros fine imposed on X
Summary
- The European Commission argues that X has violated the Digital Services Act.
- For example, the ‘blue checkmark’ is misleading, and public data is not accessible to researchers.
- That is why Brussels has imposed a fine of 120 million euros on X.
The European Commission has imposed a fine of 120 million euros on social-media platform X for violating the Digital Services Act (DSA). This marks the first time that a fine has been imposed under this law. X has been imposed this fine because of the misleading nature of its ‘blue checkmarks’, a lack of transparency in the ads repository, and inadequate access to public data for researchers.
Authenticity of accounts, accessible and searchable ad repositories, and access to public data are important for tracking down scams, hybrid threat campaigns, coordinated information operations, and fake ads. This is also important in the context of elections.
ACM and the DSA
The DSA is a European law that contains obligations for providers of online services with the objective of making the internet safer and more reliable. The Netherlands Authority for Consumers and Markets (ACM) conducts oversight over providers of digital services that are located in the Netherlands. The largest online platforms and search engines (so-called VLOPs and VLOSEs) fall under the oversight of the European Commission. Dutch users can report violations to ACM, including when these platforms are not located in the Netherlands. These reports are subsequently forwarded by ACM, as coordinator, to other national regulators in member states or to the European Commission. As a result, they are able to take effective action, such as in this investigation into X. Businesses that violate the rules can be imposed fines of up to 6 percent of their global turnovers.
In July last year, the European Commission already published a report with its preliminary findings. As the platform has not taken any appropriate measures since, the Commission has decided to impose a fine on X.
The blue checkmark
According to the Commission, the ‘blue checkmark’ (which is the ‘symbol of authenticity’ for accounts on X) are misleading to users. In exchange for payment, anyone can get a blue checkmark, without any actual verification of who is behind an account. As a result, it is difficult for users to assess the authenticity of accounts as well as the content that is spread on them. Bad actors are easily able to pretend to be another person or business, and, in that way, mislead users. While the DSA does not mandate user verification, online platforms are not allowed to claim that users have been verified when, in reality, no verification has taken place at all.
Advertising repository and access to public data
The Commission is of the opinion that X does not comply with the rules regarding transparency of advertisements, because the platform does not offer a searchable and reliable ads repository. Essential information is also often missing from the repository, such as the content and topic of the advertisement as well as who paid for it. Besides that, X, according to the Commission, does not meet the DSA obligation of giving researchers access to public data.
Next steps
X has 60 working days to inform the Commission of the specific measures it will take to end the violation surrounding the misleading use of the blue checkmarks. With regard to the two other violations, the platform has 90 working days to present an action plan. If the platform fails to do so, it risks periodic penalty payments.
TikTok
Earlier this year, the Commission shared its preliminary findings with TikTok in connection with its non-compliance with the obligations regarding the ads repository. The platform has since made binding commitments, with which the concerns that the Commission had have been taken away. That is why no fine has not been imposed on TikTok. The Commission will strictly monitor whether, in the foreseeable future, the platform actually implements the measures.
TikTok will ensure that information about advertisements is available within 24 hours, and will make the targeting criteria selected by advertisers as well as the aggregated user data available for researchers. As a result, researchers are able to see how advertisements are used and presented in a targeted manner. In addition, TikTok will introduce search options and filters, which enable users to find advertisements more easily. In December 2024, the European Commission also launched an investigation into TikTok in connection with risks regarding elections and the public debate. This investigation is still ongoing.
For more information, please refer to the press releases of the European Commission: