EU fines X €120 million for misleading users over verification and ad transparency

The European Commission imposed a €120 million penalty on X, formerly known as Twitter, citing multiple violations of the Digital Services Act — the bloc’s landmark digital marketplace and content-governance regulation. The penalty covers three specific breaches: the platform’s so-called “blue check” verification system, insufficient transparency in advertisements, and failure to provide adequate public data access for researchers.

Brussels flagged the blue-tick verification change under Elon Musk that allowed any paying subscriber to get a “verified” mark, calling it a “deceptive design” that could mislead users and facilitate scams. The Commission allocated €45 million of the fine to this breach. A further €35 million was levied for shortcomings in ad transparency, namely the failure to maintain a searchable and reliable advertising repository. The remainder — €40 million — was imposed because X restricted researchers’ access to public data, undermining independent scrutiny of content and ads on the platform.

This action marks the first enforcement of significant magnitude under the DSA, which took effect across the European Union in 2023. Regulators began formal proceedings against the platform in December 2023. The investigation built on earlier findings that had already identified misuse of “dark patterns”, inadequate ad transparency and restricted data access — problems uncovered during a 2024 probe.

EU officials emphasised that the fine is not intended as a punitive showpiece but as a clear signal that digital-services regulation will be enforced. The Commission’s digital affairs lead noted that compliance would prevent such penalties and described the sanction as “proportionate”, based on the scope, duration and impact of the infractions. Under the DSA, fines can reach up to 6 per cent of a platform’s global revenue — though this initial fine falls well below that threshold.

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Following the decision, X has 90 days to submit an action plan, while retaining the right to appeal before the European Court of Justice. The ruling comes amid broader scrutiny of major social-media and digital-advertising platforms under the DSA. Regulatory attention remains high, with ongoing investigations into X’s handling of illegal content, algorithmic transparency and content-moderation policies.

Critics in the United States, including influential political figures, have denounced the decision, accusing the European Union of unfairly targeting American firms and undermining free speech. Nevertheless, Brussels maintained that the law applies neutrally to any platform operating within the EU, regardless of ownership.



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