Brussels revealed on Friday that Elon Musk could face heavy fines due to his X platform deceiving users with its blue checkmarks for certified accounts and violating EU content rules.

The modifications that Musk made to the blue badge system have angered EU regulators because, although it was previously only available to verified users, such as leaders, companies, and media, and was subject to approval, anybody may now receive it through premium membership.

After claiming that X "deceives" users with its new blue badge regulations, the European Commission has now notified X of its preliminary opinion that the social network is "in breach" of the bloc's Digital Services Act (DSA).

In a statement, the commission said, "Since anyone can subscribe to obtain such a 'verified' status, it negatively affects users' ability to make free and informed decisions about the authenticity of the accounts and the content they interact with," adding, "There is evidence of motivated malicious actors abusing the 'verified account' to deceive users." 

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Chief executive of X, Linda Yaccarino, posted on the platform to argue that "a democratized system, allowing everyone across Europe to access verification, is better than just the privileged few being verified."

A democratized system, allowing everyone across Europe to access verification, is better than just the privileged few being verified. We stand with everyone on X and in Europe who believes in the open flow of information and supports innovation. https://t.co/JhNx0tvihi

— Linda Yaccarino (@lindayaX) July 12, 2024

On multiple X posts, Musk lashed out at Brussels, accusing Brussels of offering it a deal to censor speech and vowing to go to court over the matter.

"The DSA IS misinformation!" Musk said in response to a senior EU official, adding, "The European Commission offered X an illegal secret deal: if we quietly censored speech without telling anyone, they would not fine us. The other platforms accepted that deal. X did not."

The European Commission offered 𝕏 an illegal secret deal: if we quietly censored speech without telling anyone, they would not fine us.

The other platforms accepted that deal.

𝕏 did not. https://t.co/4lKsaRsYoA

— Elon Musk (@elonmusk) July 12, 2024

The commission continued to note that the investigation into X also looks into the spread of illegal content and how much X puts in efforts to combat disinformation.

We look forward to a very public battle in court, so that the people of Europe can know the truth https://t.co/nKBGEPxeEa

— Elon Musk (@elonmusk) July 12, 2024

The EU's top digital official, Thierry Breton, clapped back at Musk to say: "There has never been — and will never be — any 'secret deal'. With anyone." Then in a direct message to Musk, he said: "Up to you to decide whether to offer commitments or not.... See you (in court or not)."

He added: "X has now the right of defence -- but if our view is confirmed we will impose fines and require significant changes."

Back in the day, #BlueChecks used to mean trustworthy sources of information✔️🐦

Now with X, our preliminary view is that:

❌They deceive users

❌They infrige #DSA

X has now the right of defence —but if our view is confirmed we will impose fines & require significant changes. pic.twitter.com/M9tGA5pYQr

— Thierry Breton (@ThierryBreton) July 12, 2024

This is X's first warning under the DSA, a broad regulation that compels digital corporations to take more proactive measures to monitor content on the internet. The investigation was started in December 2023.

After Apple and Meta were warned by Brussels to modify their methods or face hefty fines for breaking a second regulation known as the Digital Markets Act (DMA), X is now the third business in weeks to face the wrath of the EU for breaking new landmark rules.

X was also accused by the commission of not complying with rules on advertising transparency because it does "not provide a searchable and reliable" ad database and does not provide researchers access to public data.

A corporation that violates the DSA may be fined up to 6% of its annual global revenue and may be required to make modifications in order to comply with the new regulations.

As one of 25 "very large" online platforms with over 45 million monthly active users in the 27-country bloc, including Facebook and TikTok, X is subject to harsher rules under the DSA.

The EU is targeting X as well for resource reductions related to content moderation. The European Union ordered X to provide "detailed information and internal documents" in May and requested additional details regarding the precautions taken to reduce the risks associated with generative AI in elections.

Probes under the DSA are also being conducted into Meta's Facebook and Instagram, in addition to TikTok and AliExpress.