EU Filing Lawsuit Against Elon Musk's X for Unauthorized Use of Blue Checks and Ads

Money | July 12, 2024, 7:34 p.m.

The European Union has taken Elon Musk's X to court over alleged violations of a new social media law, specifically related to the blue check verification system and advertising transparency. EU regulators claim that X allowed anyone to pay for the verification badge, leading to a flood of fake accounts and misinformation. The platform's lack of transparency is said to hinder users' ability to discern authentic content. In addition to the blue check issues, X is accused of failing to provide a reliable ad database as required by the Digital Services Act. Musk has the opportunity to defend X against these charges, but faces substantial fines if the company does not address the issues. The charges follow a lengthy investigation into X, with further probes ongoing regarding disinformation and hate speech. Other major social media platforms are also under investigation for potential violations of the DSA.