EU fines X €120M for deceptive blue checkmarks under Digital Services Act

European Commission Imposes Landmark Fine on Elon Musk's X

The European Commission has imposed a landmark €120 million ($140 million) fine on X, formerly known as Twitter, marking the first major enforcement action under the EU's Digital Services Act (DSA). The penalty targets three specific violations by Elon Musk's social media platform, with the most prominent being the platform's deceptive use of blue verification checkmarks.

The Blue Checkmark Controversy

Under Twitter's original system, the blue checkmark served as a verification badge indicating that an account belonged to a legitimate public figure, celebrity, journalist, or organization. However, after Musk acquired the platform in 2022 and rebranded it as X, the verification system underwent a fundamental transformation. The blue checkmark became a feature of X Premium, a paid subscription service available to any user willing to pay a monthly fee.

The European Commission found this change deliberately misleading. 'The current system deceives users into believing that accounts with blue checkmarks represent verified, authentic individuals or entities,' stated an EU official involved in the investigation. 'In reality, anyone can purchase this symbol, creating significant risks for impersonation, fraud, and misinformation.'

For this violation alone, X faces a €45 million penalty. The Commission determined that the deceptive design violates Article 25 of the DSA, which prohibits 'dark patterns' and misleading interface designs that manipulate users.

Additional Violations and Penalties

The €120 million total fine comprises three separate penalties. Beyond the blue checkmark issue, X received a €35 million fine for failing to maintain a functional advertising repository. Under DSA requirements, very large online platforms must provide public access to detailed information about advertisements displayed on their services, including targeting criteria and reach data.

'Transparency in advertising is crucial for understanding political messaging, commercial practices, and potential scams,' explained Margrethe Vestager, Executive Vice-President of the European Commission for a Europe Fit for the Digital Age. 'X's advertising repository has been incomplete and difficult to access, undermining this fundamental transparency requirement.'

A third penalty of €40 million addresses X's failure to provide adequate data access to researchers. Article 40 of the DSA mandates that platforms grant researchers access to public data to study systemic risks, including disinformation, hate speech, and public health concerns. The Commission found X's data access mechanisms insufficient for legitimate research purposes.

Musk's Response and Legal Challenge

Elon Musk has vowed to challenge the fine in court. Shortly after the announcement, Musk posted on X: 'We look forward to a very public battle in court, so that the people of Europe can know the truth.' The platform now has 60 days to address the blue checkmark issues and 90 days to submit compliance plans for the advertising and researcher access violations.

Legal experts note that X could face additional penalties if it fails to comply. Under the DSA, the Commission can impose periodic penalty payments of up to 5% of the company's average daily worldwide turnover, and for confirmed breaches, fines can reach 6% of global annual revenue.

Broader US-EU Tensions

The fine has escalated existing tensions between the European Union and United States over technology regulation. U.S. officials have criticized the decision as regulatory overreach. Vice President JD Vance posted on X before the official announcement: 'Europe should not attack American companies over nonsense.'

The Trump administration has characterized the fine as 'an attack on all American tech platforms,' according to POLITICO. This comes amid broader trade tensions, with the U.S. threatening tariffs in response to EU digital regulations and taxes targeting American tech giants.

The Digital Services Act in Action

The DSA, which entered into force in 2022, represents the EU's comprehensive framework for regulating digital services. It establishes graduated obligations based on platform size, with the strictest requirements applying to Very Large Online Platforms (VLOPs) like X, which has over 45 million monthly active users in the EU.

'This decision demonstrates that the DSA is not just legislation on paper,' said EU Commissioner for Internal Market Thierry Breton. 'We have the tools and the determination to enforce it. Platforms must understand that compliance is not optional.'

Two additional DSA investigations into X remain ongoing. One examines whether X does enough to combat illegal content, while another focuses on the platform's community notes feature for contextualizing potentially misleading posts.

Industry Implications

The fine sends a clear signal to other major platforms operating in Europe. Companies like Meta, Google, TikTok, and Amazon face similar DSA obligations and potential scrutiny. The European Commission has already fined Apple €500 million and Meta €200 million under separate digital regulations.

Digital rights advocates have welcomed the enforcement action. 'For too long, platforms have made arbitrary changes that harm users without consequences,' said Jan Penfrat, Senior Policy Advisor at European Digital Rights. 'The DSA finally gives regulators teeth to hold them accountable.'

As X prepares its legal challenge and the EU stands firm on its regulatory approach, this landmark case will likely shape the future of platform governance in Europe and influence global digital regulation debates.