The European Union has imposed a substantial €120 million (approximately $140 million) fine on Elon Musk’s X for breaching the bloc’s Digital Services Act (DSA). This penalty marks a significant milestone, as it is the first instance of a company being penalized under the DSA, which aims to combat “illegal and harmful activities” on online platforms. The decision follows an extensive investigation initiated by the EU in December 2023.
In its findings released in July 2024, the EU concluded that X was not meeting essential obligations regarding advertising transparency, data accessibility for researchers, and the presence of “dark patterns,” which are deceptive design elements that can mislead users. The blue checkmark system utilized by X was particularly criticized for its potential to mislead users into believing they were interacting with verified accounts. The EU emphasized that, while the DSA does not mandate user verification, it strictly forbids platforms from misleading users about their verification status.
European Commission’s tech chief, Henna Virkkunen, emphasized the importance of user protection and the integrity of online environments, stating, “Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU.” Virkkunen further noted that the DSA is designed to safeguard users’ rights, facilitate research initiatives to identify potential threats, and restore trust in digital spaces.
The DSA allows for fines of up to 6 percent of a company’s global revenue for violations. However, because X is a private entity—acquired by Musk for $44 billion in October 2022 and subsequently by X AI for $33 billion in March 2025—the specific maximum penalty it could have faced remains uncertain. X has the option to appeal the fine but must notify the EU of the corrective actions it plans to implement regarding the misleading use of blue checkmarks within 60 working days. Additionally, it is required to outline its intended remedies for other violations within 90 days. Should the company fail to comply with these timelines, it may incur further charges.
The earlier investigation also focused on X’s moderation practices and the spread of illegal or harmful content, a review that is still ongoing and could result in additional penalties for the platform.
