EU Issues X €120 Million Fine Over DSA Transparency Breaches

The European Union has dealt a significant blow to Elon Musk’s X platform, imposing a €120 million ($140 million) fine for multiple violations of the Digital Services Act (DSA). The penalty addresses persistent transparency issues and deceptive design practices that exposed users to fraud and manipulation.

Verification System Under Fire

The core complaint centers on X’s blue checkmark system. Under previous Twitter ownership, verification indicated official accounts of public figures and brands. However, Musk’s decision to sell blue checkmarks to any paying user has rendered the marker meaningless and deceptive. The EU Commission found that X falsely claims verification without conducting proper background checks—users only need to verify a phone number to obtain a checkmark. This deception exposes users to impersonation fraud and scams, directly violating DSA regulations.

Broader Compliance Failures

Beyond the verification issue, X faces penalties for failing to maintain a searchable ad repository and refusing researchers adequate access to public platform data. The company has 90 days to submit a corrective action plan or face additional penalties.

Rather than complying, Musk has escalated tensions dramatically, comparing the EU Commission to the Nazi regime and calling for NATO abolishment. His defiant stance has gained support from Trump Administration officials, including Vice President J.D. Vance and Secretary of State Marco Rubio, who frame the fine as an attack on American companies.

The situation highlights growing tensions between U.S. tech platforms and European regulators. With Meta also facing substantial EU fines, speculation mounts about whether the Trump Administration will impose retaliatory measures including tariffs or visa restrictions against European entities.