EU Slaps X with $140M Fine for Business Misconduct

EU Slaps Elon Musk's X with $140M Fine Over Alleged Business Misconduct The European Union has imposed a $140 million fine on Elon Musk's X, formerly Twitter, for violating digital platform regulations. The fine, announced on December 5, 2023, marks a significant financial blow to the company, which has faced growing scrutiny over its business practices in the EU. According to the European Commission, the fine was issued against X's holding company for several failures to comply with rules governing large digital platforms. The violations included a misleading use of the blue check mark to identify verified users, a poorly functioning advertising repository, and a failure to provide effective data access. The blue check mark, which was previously used to verify the authenticity of users, was found to be misleadingly used by X, leading to a loss of trust among users. The fine is the latest development in the EU's efforts to regulate large digital platforms. The European Commission has been cracking down on companies that fail to comply with its digital regulations, and X is not the first company to face penalties. According to a European Commission spokesperson, "the fine against X's holding company was due to the platform's failure to comply with EU regulations, which are designed to protect users and ensure a level playing field for all companies." The move also underscores the EU's commitment to enforcing its digital regulations, as seen in its contrast with Chinese-owned TikTok, which has offered concessions to avoid similar penalties. "The EU is taking a strong stance on digital regulation, and companies that fail to comply will face consequences," said a spokesperson for the European Commission. X has faced growing scrutiny over its business practices in the EU, particularly after Elon Musk took over the company in 2022. The company has been accused of failing to comply with EU regulations, including the General Data Protection Regulation (GDPR) and the Digital Services Act (DSA). The fine is a significant blow to the company, which has been struggling to regain user trust and comply with EU regulations. The fine is also a significant financial blow to Elon Musk, who has been facing financial struggles in recent months. The billionaire has been accused of mismanaging his companies, including Tesla and SpaceX, and has faced criticism for his handling of X. The current status of the fine is that it has been imposed by the European Commission, and X has 30 days to appeal the decision. If the fine is upheld, it will be a significant financial blow to the company, and could have implications for its future business practices. In a statement, a spokesperson for X said that the company is reviewing the fine and will take necessary steps to comply with EU regulations. "We are committed to complying with EU regulations and will take all necessary steps to ensure that our platform is compliant with all applicable laws and regulations," said the spokesperson. The EU's move to fine X is a significant development in the world of digital regulation, and could have implications for other companies that operate in the EU. As the EU continues to crack down on companies that fail to comply with its digital regulations, it remains to be seen how X will respond to the fine and what implications it will have for the company's future business practices.