EU fines Elon Musk’s X for violating Digital Services Act transparency rules

The European Commission has fined Elon Musk’s social media platform X, formerly known as Twitter, €120 million (£105 million) for breaching the European Union’s Digital Services Act (DSA). According to the Commission, X violated the transparency and user protection standards mandated under the DSA in three ways: deceptive design practices linked to its blue checkmark system, lack of transparency in its advertising database, and failure to share public data with independent researchers.

Regulators said the platform’s ‘blue check’ system misled users because it allowed anyone to buy verification, making it difficult to distinguish genuine accounts from impersonators. Before Musk bought the company in 2022 for $44 billion, the checkmark symbolised officially verified identities, but under his ownership it became a paid feature costing $8 per month. The EU argued that this change increased the risk of scams and misinformation.

Additionally, the Commission found that X’s advertising database imposed barriers to access and lacked vital details such as who funded ads and their intended audiences. The company also delayed providing data, undermining the transparency requirements essential for public accountability. The European Commission’s Vice-President for Tech Sovereignty, Henna Virkkunen, stated that deceptive design, lack of ad transparency, and restrictions on research access undermine trust online. X now has 60 working days to adjust its blue checkmark system and 90 days to address the other two violations, or it risks further financial penalties. The fine marks the EU’s first major enforcement action under the DSA, a law designed to hold major online platforms accountable for user safety, transparency, and fair digital practices.