The European Union has imposed a €120 million fine on Elon Musk’s social media platform X for violating transparency obligations under the bloc’s Digital Services Act (DSA), marking the first major penalty issued under the landmark legislation.
EU Vice President Henna Virkkunen said the ruling followed clear evidence that X misled users through its paid blue checkmark system, obscured information about advertisers, and restricted access for independent researchers. She stressed that the decision was not related to censorship and that compliance would have avoided the fine.
The United States pushed back ahead of the announcement, with Vice President JD Vance asserting that the EU should support free speech rather than target US tech firms.
Brussels opened its investigation into X in December 2023. Regulators concluded that the company’s paid verification badges created a false impression of authenticity and that advertising transparency standards were not being met. The platform also failed to provide mandated data access for researchers studying online risks.
The fine includes €45 million for misleading verification, €35 million for inadequate ad transparency, and €40 million for obstructing research access. While DSA penalties can reach up to 6 percent of a company’s global turnover, the Commission said annual revenues did not directly factor into this calculation.
EU officials said further investigations into X remain underway, including probes into its handling of illegal content and manipulated information.
The Biden administration has sharply criticized Europe’s regulatory approach, warning that increased pressure on US tech companies could trigger economic consequences, including in areas such as steel tariffs.
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