EU fines X $140 million for violating landmark digital service rules
In a landmark decision, the European Union (EU) has imposed a hefty €120 million (approximately $140 million) fine on Elon Musk’s social media platform, X, marking the first enforcement of the Digital Services Act (DSA). This significant penalty follows a comprehensive investigation initiated in December 2023, focusing on X’s compliance with the DSA’s stringent regulations aimed at curbing illegal and harmful activities online. The EU’s tech chief, Henna Virkkunen, emphasized that deceptive practices, such as misleading users with its blue checkmark verification system and obscuring information about advertisements, are unacceptable within the EU’s digital landscape. The DSA is designed to protect users, enhance transparency, and restore trust in online platforms, and this ruling underscores the EU’s commitment to holding companies accountable for their actions.
The investigation revealed that X was not only failing to meet obligations regarding advertising transparency and data accessibility for researchers but was also utilizing “dark patterns”—design features intended to mislead users. The blue checkmark system, which allows anyone to pay for verification, was particularly criticized for complicating the process of identifying authentic accounts. This fine represents a pivotal moment in digital regulation, as the EU has the authority to impose penalties of up to 6% of a company’s global revenue for DSA violations. Given that X is privately owned, the exact potential penalty remains ambiguous; however, Musk’s ownership of the platform, acquired for $44 billion in October 2022 and further invested in by his AI company, X AI, for $33 billion in March 2025, highlights the financial stakes involved.
The EU’s decision to fine X also comes amidst a broader scrutiny of the platform’s moderation practices and the spread of disinformation, particularly following Musk’s controversial management style and his interactions with far-right political figures. Lawmakers within the EU have expressed concerns over the rising levels of disinformation since Musk’s acquisition, prompting them to push for a thorough investigation into the platform’s practices. As the investigation continues, X faces the possibility of additional penalties if it does not address the ongoing compliance issues. Musk and other tech leaders have urged the U.S. government to intervene against what they perceive as unfair treatment from the EU, adding a layer of geopolitical tension to the unfolding situation. As this story develops, it will be crucial to monitor how X responds to the fine and whether it takes steps to align with the DSA’s requirements.
https://www.youtube.com/watch?v=AI6Gwydbs0s
The European Union has served Elon Musk’s X with a
€120 million
(about $140 million) penalty for violating the bloc’s digital service rulebook, including over the “deceptive design” of its blue checkmark. Today’s announcement marks the first time that a company has been fined under the landmark Digital Services Act (DSA) law for curbing “illegal and harmful activities” on online platforms, and follows the EU launching a multifaceted investigation into X in December 2023.
“Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU,” EU tech chief Henna Virkkunen said in a statement. “The DSA protects users. The DSA gives researchers the way to uncover potential threats. The DSA restores trust in the online environment. With the DSA’s first non-compliance decision, we are holding X responsible for undermining users’ rights and evading accountability.”
In July 2024, the EU preliminarily ruled that X was failing to comply with obligations around advertising transparency, data access for researchers, and “dark patterns” — deceptive interface features designed to trick users. X’s blue checkmark system was specifically called out for deceiving users by allowing anyone to pay to be “verified,” making it harder to determine the authenticity of X accounts.
The EU can charge companies up to 6 percent of their global revenue for DSA violations. As X is a private company — purchased by
Musk for $44 billion in October 2022
and again by his artificial intelligence company,
X AI, in March 2025 for $33 billion
— it’s unclear what its potential maximum penalty could have been. X can appeal the fine, or could still reach a settlement with the EU by implementing changes that satisfy DSA compliance concerns.
European lawmakers had deliberated how large a fine to issue according to
The
New York Times
, reporting that regulators sought to make an example of X as a warning to other companies while weighing the risks of sparking retaliation from President Donald Trump amid ongoing trade disputes. Musk alongside the leadership of US tech giants have
encouraged the President
to
stop the EU from taking advantage of their companies
.
The 2023 investigation was also launched to scrutinize X’s moderation practices and the dissemination of illegal or harmful content on the platform, which is currently still ongoing and could incur further penalties.
The EU has
criticized X over rising levels of disinformation
following its acquisition by Musk. In January, EU lawmakers pledged to
“energetically” push the X investigation forward
over concerns with Musk’s promotion of Germany’s far-right party leader on the platform. Musk has used X to rally behind
other far-right personalities
and sparked outrage after pulling
a controversial gesture
during his speech at Trump’s inauguration.
Developing…
