Brussels / Global — December 5, 2025 | Dalena Reporters
The European Commission has imposed a €120 million (approx. US $140 million) penalty on X, the social-media platform owned by Elon Musk, citing multiple violations of EU online-content and transparency laws under the Digital Services Act (DSA).
In a precedent-setting enforcement action the first under the DSA regulators singled out three key breaches: the “deceptive design” of X’s paid “blue checkmark” verification system, failure to provide transparent public records of advertisements, and denial of researcher access to public data streams. The Commission said the blue-tick system now allowed any user who pays a fee to acquire “verified” status a change that obscures identity authenticity and exposes users to impersonation, scams and misinformation.
Under the DSA, digital platforms have strict obligations to ensure transparency, accountability and user safety including clear advertising disclosures, accessible public-data archives for scrutiny, and accurate design cues so users can gauge the authenticity of content and account holders.
The Commission explained the fine was calculated based on the severity, duration, and impact of the violations on European users. While the maximum possible penalty under DSA rules can reach up to 6% of a platform’s global turnover, regulators opted for the current figure citing proportionality and as a warning signal to X and other large-scale digital operators.
In a statement, EU tech regulators emphasised that the sanction was not an attempt at censorship, but a demand for compliance: “Deceiving users with blue-checkmarks, obscuring ad-info and blocking researchers have no place online in the EU,” said the lead official overseeing the DSA implementation.
The ruling has stirred tensions beyond Europe. In the United States, critics including some high-profile politicians warned that the fine could represent regulatory overreach and an attack on free speech and American tech firms.
For now, X has been given deadlines to correct the infractions: update its verification system, publish a transparent ad-library, and ensure researchers have meaningful access to public data. Failure to comply could expose the platform to further penalties up to the full 6% global-revenue fine allowed under DSA rules.
This enforcement the first major penalty under the DSA may mark a turning point in global digital-regulation efforts. Observers say it signals that regulators are serious about holding powerful platforms accountable for harmful design practices and lack of transparency, with potential ripple effects for platforms operating worldwide.