The European Commission has fined X €120 million for multiple violations of the Digital Services Act (DSA), marking the first formal non-compliance ruling under the sweeping 2022 law designed to improve online transparency and safety. The decision—and the furious response it triggered from X owner Elon Musk and senior Trump Administration officials—has intensified already-strained transatlantic tensions over technology regulation.
According to the Commission’s announcement, the penalty targets three violations: the “deceptive design” of X’s blue checkmark system, failures in the platform’s ads transparency repository, and its refusal to provide researchers with access to public data. Regulators said X allows users to purchase a verified badge without meaningful identity checks, misleading the public and enabling impersonation and fraud. Officials also said X’s ad repository lacks required information about content, sponsors, and topics, while imposing delays and access barriers that undermine research into political ads, disinformation campaigns, and scams.
The Commission further found that X prohibits eligible researchers from scraping or independently accessing public data, in violation of Article 40 of the DSA. X now has 60 working days to explain how it will end deceptive checkmark practices and 90 days to submit a compliance plan addressing its ads repository and data access shortcomings.
Henna Virkkunen, the EU’s Executive Vice-President for Tech Sovereignty, Security and Democracy, said in the announcement: “Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU. With the DSA’s first non-compliance decision, we are holding X responsible for undermining users’ rights and evading accountability.”
As TIME reported, Musk reacted angrily, calling the ruling “bulls***” and later arguing the EU should be “abolished.” Prominent Trump Administration officials echoed his outrage. Secretary of State Marco Rubio called the fine “an attack on all American tech platforms,” while FCC Chairman Brendan Carr accused Brussels of penalizing success. Vice President J.D. Vance, a frequent critic of EU tech rules, said Europe should “support free speech, not attack American companies over garbage.”
EU officials rejected claims of censorship, emphasizing that companies that comply face no penalties.
Failure by X to meet the Commission’s next deadlines could trigger additional escalating fines.
Need Help?
If you have questions or concerns about how to navigate the global AI regulatory landscape, don’t hesitate to reach out to BABL AI. Their Audit Experts can offer valuable insight, and ensure you’re informed and compliant.
