Elon Musk’s social media platform, X, faces hefty fines from the EU over allegations of breaching digital transparency rules. The European Commission, in its preliminary findings, has accused X of violating the Digital Services Act (DSA), introduced this year to enhance oversight of online content.

At the heart of the issue is X’s decision, following Musk’s $44 billion acquisition two years ago, to monetize the coveted “blue checkmark” verification badge. This move, previously reserved for confirming the authenticity of accounts, has raised concerns that it misleads users and undermines their ability to discern credible information.

Thierry Breton, the EU’s Internal Market Commissioner, emphasized the evolving perception of these verification badges, once symbols of reliability, now potentially misleading due to X’s policies. Breton highlighted additional DSA violations by X, including alleged use of manipulative user interface designs and insufficient transparency in advertising and data accessibility for researchers.

X has the opportunity to contest these allegations, but if found guilty, could face fines of up to 6% of its global revenue. This marks a significant regulatory test for the EU under the DSA, aiming to enforce stringent standards amidst growing concerns over digital platform accountability.

X, formerly Twitter, has yet to publicly respond to the EU’s preliminary findings, setting the stage for potential legal and operational adjustments in compliance with EU digital regulations.