Elon Musk’s social media platform X (formerly Twitter) was fined €120 million (about $140 million) by the European Union in one of the first major enforcement actions under the Digital Services Act (DSA) — a sweeping set of rules designed to govern large online platforms and protect user safety and transparency. 

The fine, announced in early December 2025, follows a two-year investigation by the European Commission into how X operates within the EU. Regulators concluded that the platform repeatedly breached key transparency obligations under the DSA — marking a significant moment in EU tech regulation and the bloc’s willingness to hold major tech companies accountable.

Key violations cited by the EU included:

Misleading Blue Checkmark Verification:
After Elon Musk acquired the company in 2022, X dramatically changed its blue checkmark system. The badge — originally used to verify public figures, journalists, and institutions — was opened up to any user willing to pay for a subscription. The European Commission concluded that this change was a “deceptive design” because it no longer signified meaningful verification of identity. Users could easily be misled into thinking any account with a blue checkmark was authentic, which exposed them to higher risks of impersonation, scams, and misinformation. 

Lack of Advertising Transparency:
The DSA requires large online platforms to maintain a clear, accessible advertising repository — a database showing who paid for ads, what content those ads contained, and who saw them. According to the EU ruling, X’s advertising repository failed to meet these standards. The system contained incomplete details and imposed delays and barriers that made it difficult for researchers, regulators, and the public to use the information effectively.

Restricted Data Access for Researchers:
Another DSA requirement is that very large online platforms make public data accessible to accredited researchers so they can analyze trends, misinformation, and systemic risks. The European Commission found that X imposed barriers — such as overly complex processes and delays — that hindered independent research on important public safety concerns.

Because of these issues, the EU fined X €120 million as part of its first non-compliance decision under the Digital Services Act. The platform has been given strict deadlines to propose and implement changes to address these violations or face potential additional penalties.

The decision has sparked a transatlantic political backlash, with Elon Musk and some U.S. officials criticizing the fine as excessive and claiming it undermines free speech — though EU leaders have maintained the fine is about regulatory compliance, not censorship.

This landmark enforcement illustrates how governments and regulators are increasingly willing to challenge powerful tech platforms to ensure transparency, accountability, and user protection in the digital age.