After a two-year investigation, the European Union has imposed a fine of 120 million euros on the social network X (formerly Twitter), owned by Elon Musk. The European executive has adopted a non-compliance decision against the social network for violation of the transparency obligations established by the Digital Services Act (DSA).
Because X was fined
Three different social media activities have ended up at the center of attention in Brussels since it passed into the hands of the billionaire of South African origin in 2022. The three violations include the blue tick’s “deceptive” graphics, lack of transparency of its advertising archive, and lack of access to public data for researchers.
The assignment of the blue tick was at the center of the European investigation launched on 18 December 2023. According to the Commission, the “blue tick” – the system used by the social platform to indicate that a user’s identity has been verified, mainly in the case of celebrities – risks confusing users. Furthermore, purchasing a blue check would not guarantee that a real person is behind the account and not a bot. This is because users can obtain it simply by paying a small financial contribution, without following any identity verification procedure.
Furthermore, AX disputes the transparency obligations required by the DSA, on the archiving of advertisements and on the sharing of platform data with researchers. Now, according to the Commission’s indications, X has 90 days to present a plan to remedy the violations.
How much is X worth in Musk’s hands
The fine imposed by the Commission is the first of its kind on a social platform. The sum of the fine, equal to 120 million euros, is, however, negligible if you look at the value of the company. When Elon Musk bought Twitter in 2022, later renaming it X, the deal got the whole world talking: the official price was 44 billion dollars. However, the platform’s valuation has fluctuated significantly since then. According to an analysis by Fidelity Investments, by 2024 the value of Other observers had estimated a slightly higher value, around 12 billion. In fiscal 2023, the company reported revenue of approximately $3.4 billion.
In recent months, with internal restructuring and integration into the artificial intelligence startup xAI, Musk said that X would be worth about $33 billion in equity, rising to $45 billion if debt and related assets are considered. Some external analyzes speak of a revaluation up to the original price of 44 billion.
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Experts point out, however, that In practice, the value of X is today more “political-financial” than linked to its actual market.
