According to Inc, the European Commission has fined Elon Musk’s X platform a whopping $140 million for deceptive practices related to its “verified” checkmarks and for violating rules on advertising transparency and data access for researchers. The commission’s formal notice, issued on Friday, states that X’s paid verification system allows “anyone” to get a blue check without meaningful identity checks, making it hard for users to spot scams and impersonation fraud. X now has just 60 days to submit a plan to fix the verification mess and 90 days to address the ad and data issues. If it fails, the company faces additional “periodic penalty payments.” This decision culminates formal proceedings that began back in December 2023.
Musk’s Cookie Crumb Trail
Musk’s response on Sunday was, well, classic Musk. Instead of addressing the core issues of fraud and data transparency, he went on a rant about the EU’s cookie consent pop-ups, claiming they’ve “destroyed countless life-seconds.” It’s a deflection, and not a very good one. Here’s the thing: complaining about annoying pop-ups is a universal pastime, but it’s a bizarre counter-argument to a fine about systemic deception that enables financial scams. It makes the whole response seem unserious, like he’s trying to rally his base against “idiotic” bureaucrats rather than engage with the legitimate, user-safety problems his platform has been accused of fostering. Does he really think that’s a winning strategy with EU regulators?
The Real Problem With Blue Checks
And that’s the real story the meltdown obscures. The EU’s case cuts to the heart of Musk’s fundamental redesign of X. By monetizing verification, he destroyed its original meaning—that an account was who it said it was. Now, as the commission’s notice bluntly puts it, the checkmark is a paid feature, not a trust signal. That creates a dangerous environment. Basically, it’s a playground for bad actors. They can pay a few dollars, get a blue check, and instantly look more credible when trying to impersonate a company, celebrity, or government agency. The platform itself becomes an accomplice to fraud. So when Musk jokes about cookies, he’s ignoring the fact that his own policies are actively making his users less safe.
A Costly Pattern
This isn’t X’s first EU rodeo. It’s already under investigation for potentially failing to curb illegal content and disinformation under the Digital Services Act (DSA). This fine feels like a opening salvo. The 60 and 90-day deadlines are a clear ultimatum: change the product meaningfully, or the financial pain will keep coming. Periodic penalties are no joke. But can Musk’s X actually comply? Rebuilding verification with integrity would mean undermining a revenue stream and admitting the current system is flawed. I think that’s a tough pill for him to swallow. His entire management style has been one of impulsive, defiant change. Regulatory compliance is the exact opposite—it’s slow, meticulous, and collaborative. Which world does he want to live in? The $140 million question is whether this fine is just the cost of doing business his way, or a sign that the EU is finally forcing his hand.
