The European Union has fined Elon Musk’s social media platform X with €120 million. The fine comes after the EU stated that X broke the bloc’s Digital Services Act (DSA) rules. Officials (EU) said these violations could put users at risk of scams and online manipulation.
The Commission opened the probe two years ago. Investigators focused on three transparency failures. First, the paid blue checkmark design proved deceptive. Regulators said the feature blurred the lines between verified accounts and paid accounts. The Commission said, this design could invite impersonation and scams.
Second, the ad transparency tools failed to meet DSA standards. The law demands a searchable ad repository that shows who paid for adverts and their intended audiences. Regulators found X’s ad database hampered scrutiny. The Commission flagged excessive processing delays and design choices that limited access.
Third, independent researchers faced barriers to public data. The DSA aims to let researchers analyze platform dynamics and spot coordinated influence campaigns. The Commission said X set up unnecessary obstacles. That restriction, regulators argued, weakened outside oversight.
Henna Virkkunen, the EU’s tech chief, framed the fine as enforcement, not censorship. She said the Digital Services Act requires compliance to protect users and democratic debate. The Commission described the penalty as proportionate and based on the breaches’ nature, scale, and duration.
The decision marks a milestone under the DSA. The fine is one of the first big moves made by regulators towards an established online platform. The decision may guide the way for the paid verification, ad disclosures, and data access rules across Europe to be shaped and implemented by the platforms.
X now faces deadlines to fix the shortcomings. The company must submit a plan to the Commission within a set time. The EU has given X between 60 and 90 working days to propose remedies, depending on the issue. Failure to comply could trigger further action.
The United States reacted sharply. Some US officials view Brussels’ rules as targeting American tech firms. The ruling could escalate diplomatic and regulatory tensions over tech governance and platform rules. Observers expect debate about global standards for platform transparency and safety.
The fine underlines a clear message. The Digital Services Act demands transparent design choices. It also requires ad transparency and researcher access. Regulators signaled that platforms must adapt their systems to meet those rules. The EU enforcement push may reshape platform policies worldwide.
Also Read – EU Eyes Centralized Crypto Oversight While MiCA Approvals and Rules Accelerate