The European Union has fined the social media platform X 120 million euros, equal to about 140 million U.S. dollars. This is the first penalty of its kind under the EU's new Digital Services Act. Regulators say X, owned by Elon Musk, broke rules on transparency. They say the platform used deceptive design and failed to provide clear data.
The European Commission announced the fine on Friday. It follows a two-year investigation into X's practices. The fine targets three specific violations. They involve the platform's famous "blue checkmark," its advertising system, and its data access for researchers.
Details of the Violations
The largest part of the fine, 45 million euros, is for the "blue checkmark" system. Before Elon Musk bought the company, this checkmark helped verify the identity of public figures, journalists, and organizations. After the takeover, the checkmark became a feature of the paid "X Premium" subscription.
EU officials say this change is deceptive. They state that paying for a checkmark is not a meaningful verification of a user's identity. This makes it hard for people to know who is behind an account. The Commission says this exposes users to scams and impersonation fraud.
The second violation concerns X's advertising repository. Platforms under the DSA must keep a public, searchable database of all ads. This includes who paid for them and who they targeted. The EU says X's ad library lacks transparency and has design barriers. Officials say it lacks critical information and has excessive delays. This failure makes it difficult to study fake political ads or scam campaigns. The fine for this breach is 35 million euros.
The third breach involves data access for researchers. The EU requires platforms to give researchers access to public data. This helps study risks like misinformation. The Commission says X prohibits data access through its terms of service. It also creates unnecessary barriers for approved researchers. This part of the fine totals 40 million euros.
US Officials Condemn EU Decision
The fine has caused a sharp reaction from United States officials. They accuse the European Union of targeting a successful American company.
U.S. Vice President JD Vance criticized the decision before it was officially announced. He wrote on X that the EU was punishing the platform "for not engaging in censorship." He argued the EU should support free speech instead. Elon Musk responded to Vance's post with the words "Much appreciated".
Brendan Carr, chair of the U.S. Federal Communications Commission (FCC), also criticized the move. He wrote that Europe is "taxing Americans to subsidise a continent held back by Europe's own suffocating regulations".
EU officials strongly rejected the accusation of censorship. Henna Virkkunen is the European Commission's Executive Vice-President for tech regulation. She stated clearly, "The DSA is having nothing to do with censorship." She said this decision is only about transparency on the X platform.
A Broader Clash on Tech Regulation
This fine is part of a larger tension between the U.S. and the EU on technology rules. The Digital Services Act is one of the world's strictest laws for online content and platform accountability. U.S. leaders have warned against tougher regulation of tech firms by foreign governments.
Last week, U.S. Commerce Secretary Howard Lutnick suggested the EU should reconsider its tech rules. He linked this to a U.S. decision on steel and aluminum tariffs. An EU commissioner called these threats "blackmail".
EU officials insist their regulations are not about nationality. They say the rules apply to all large platforms operating in Europe. Besides X, 24 other companies are classified under the DSA. This includes non-U.S. companies like TikTok.
On the same day as the X fine, the EU announced it had secured commitments from TikTok. The Chinese video platform agreed to improve its advertising repository. Because TikTok agreed to comply, it faced no fine.
Henna Virkkunen contrasted the two outcomes. "We're not here to impose the highest fines, we're here to make sure that our digital legislation is enforced," she said. "If you comply with our rules, you don't get a fine".
The Size of the Fine and Next Steps
The total fine of 120 million euros is significant but could have been larger. Under the DSA, fines can reach up to 6% of a company's global annual revenue. X's revenue was estimated between 2.5 and 2.7 billion dollars in 2024. This means the maximum potential fine could have been approximately 150 to 162 million dollars.
An EU official said the fine was calculated to be "proportionate." It considered the nature of the violations, how many EU users were affected, and how long the problems lasted. The fine is smaller than recent EU penalties on other tech giants. For example, Apple and Meta received fines of 500 million and 200 million euros earlier this year under different laws.
X now has 90 days to submit an action plan to the European Commission. The plan must show how the platform will fix the violations. The company can also appeal the decision in the European Court of Justice.
Elon Musk has not commented directly on the fine. However, he shared a post about a proposed U.S. bill called the GRANITE Act. This bill would allow companies to sue foreign entities in U.S. courts over claims of foreign censorship. The post suggested X could sue the European Commission for three times the amount of the fine.
Ongoing Investigations and Future Impact
This decision closes only one part of the EU's investigation into X. Two other major probes are still ongoing. One focuses on how X tackles the spread of illegal content. This includes content related to violence and terrorism. The other investigates the platform's content recommendation algorithms. Regulators are looking at how these algorithms might promote harmful content, especially during elections.
Experts say this fine is a major statement. It shows the EU's willingness to enforce its new digital rules. Matt Navarra, a social media expert, told the BBC that X made itself "an easy first target" for regulators.
The outcome sets a precedent for how the DSA will be enforced. Other large platforms will be watching closely. The case also highlights a growing transatlantic divide. The U.S. and EU have different philosophies on regulating the internet, free speech, and corporate accountability.