EU Fines Elon Musk’s X €120 Million Over Misleading Blue Checkmarks, Sparking U.S. Backlash

The EU has fined Elon Musk’s social media platform X €120 million over its blue verified badges, citing misleading practices that expose users to scams and impersonation. The move drew sharp criticism from U.S. officials, including Secretary of State Marco Rubio and FCC Chair Brendan Carr, who accused the EU of unfairly targeting American tech firms. The fine also addresses X’s lack of ad transparency and restricted researcher access, marking the first enforcement under the EU’s Digital Services Act.

The European Union has imposed a €120 million (£105 million) fine on Elon Musk’s social media platform X over its controversial blue verified badges, triggering strong backlash from U.S. officials and sparking a transatlantic dispute over regulation of tech companies. The European Commission stated that by allowing users to pay for a blue tick on their profiles, X misleads the public because it does not “meaningfully verify” who is behind an account. The Commission said that this practice exposes users to scams, impersonation, and other manipulative actions by bad actors, undermining trust and online safety.

The fine prompted immediate criticism from top U.S. authorities. Secretary of State Marco Rubio condemned the decision, describing it as “an attack on all American tech platforms and the American people by foreign governments” and declaring that “the days of censoring Americans online are over.” Elon Musk shared Rubio’s post, expressing his full agreement. Brendan Carr, chair of the U.S. Federal Communications Commission (FCC), also criticized the European Commission, asserting that the regulator was targeting X simply because it was “a successful US tech company.” He added that Europe was “taxing Americans to subsidize a continent held back by Europe’s own suffocating regulations.”

The remarks echoed similar comments made earlier by U.S. Vice President JD Vance, who said the EU was punishing the platform “for not engaging in censorship” and called for European regulators to support free speech instead of penalizing American companies. Social media analyst Matt Navarra noted that the EU’s decision reflects more than a punitive measure; it signals the Commission’s willingness to rigorously enforce its rules and maintain oversight of tech firms operating in Europe.

Beyond the issue of blue checkmarks, the European Commission also criticized X for failing to provide transparency in advertising and for restricting researchers’ access to public data. The Commission emphasized that the fine reflected the severity, duration, and impact of these breaches on EU users. Henna Virkkunen, the Commission’s executive vice-president for tech sovereignty, said the fine was intended to hold X accountable for “undermining users’ rights and evading accountability,” adding that deceiving users, obscuring information on ads, and denying researchers access are unacceptable practices in the EU.

X is required to submit a plan to the Commission detailing how it will bring its operations into compliance with EU law, or it could face additional, recurring fines. This represents the European Commission’s first enforcement action against a platform under the Digital Services Act (DSA), a regulatory framework designed to set clear obligations for platforms regarding content moderation, advertising transparency, and data practices. The DSA, alongside the Digital Markets Act, is part of the EU’s broader strategy to ensure that tech companies operate fairly, protect consumers, and maintain competitive markets. U.S. officials have expressed concern that these rules could disadvantage American companies and impede innovation.

The controversy stems from changes Musk implemented after acquiring Twitter in late 2022. The platform’s previous verification system, which confirmed a user’s identity and served as a “trust signal,” was replaced by a subscription-based model linked to X Premium. Users now pay a monthly fee to display a blue tick, and eligibility requires a display name, profile picture, confirmed phone number, and recent activity within the last 30 days. Accounts that are misleading, deceptive, or involved in spam activity are excluded.

Musk argued that the new verification system was intended to incentivize subscriptions, increase revenue, and reduce bot activity while giving paying users higher visibility in replies. However, critics warned that it could increase the risk of impersonation and scams, boosting the influence of bad actors and spreading misleading content.

Matt Navarra highlighted that the system marked a departure from traditional verification practices. He explained that verification is usually a trust signal rather than a transactional service, but on X, it had been “flipped.” With minimal identity checks and no rigorous validation, X became a primary target for the EU’s scrutiny of deceptive platform design.

The EU’s enforcement action underscores heightened regulatory scrutiny of digital platforms operating in Europe, illustrating a growing tension between U.S. tech companies and European authorities over issues of transparency, accountability, user protection, and free speech. The dispute also highlights broader geopolitical and economic dynamics, with U.S. officials warning against regulatory overreach that they argue unfairly penalizes American businesses while Europe enforces stricter rules.