EU imposes 120 million euro fine on Elon Musk's X for violating social media law in bloc

LONDON The European Union has fined Elon Musks social media platform X 120 million euros ($140 million) for failing to comply with EU digital regulations, which authorities said could put users at risk of scams and manipulation. The European Commission announced the penalty after a two-year investigation into the platform under the blocs Digital Services Act (DSA).

The DSA is a comprehensive set of rules that obligates online platforms to take responsibility for protecting European users and removing harmful or illegal content. Non-compliance can result in significant fines.

The Commission identified three separate violations by X, formerly known as Twitter, relating to the DSAs transparency obligations. The companys design of blue checkmarks was found to be misleading, potentially exposing users to scams. Additionally, X did not meet the requirements for transparency in its advertising database. EU rules mandate that platforms maintain a clear, accessible database of all digital ads, including information about who paid for them and the targeted audience, to aid researchers in spotting fake ads, scams, and coordinated influence efforts. The Commission noted that Xs database had access restrictions and delays that hindered this transparency.

Regulators also criticized X for creating obstacles for researchers attempting to access platform data. Misleading users with verification badges, concealing ad information, and restricting researcher access have no place online in the EU. The DSA exists to safeguard users, said Henna Virkunnen, the EU executive vice-president for tech sovereignty, security, and democracy, in a statement.

Analysis: EU Fine Highlights X's Compliance Challenges

The European Union's €120 million penalty against Elon Musk’s platform X underscores ongoing difficulties in enforcing the Digital Services Act. The fine, following a two-year investigation, focuses on transparency violations that regulators say put users at risk of scams and manipulation.

Specifically, X’s handling of verification badges, its advertising database, and restricted access for researchers have drawn criticism. These shortcomings show that even major global platforms face challenges in adapting to strict EU regulations designed to protect user safety and ensure accountability.

Moving forward, X will need to demonstrate concrete improvements in transparency and user safeguards to avoid further penalties. The case also signals to other tech companies operating in Europe that the DSA carries significant enforcement power and that compliance cannot be optional.

Sources:

• EU hits Elon Musk's X with 120 million euro fine for breaching bloc's social media law

Author: Lucas Grant
Lucas Grant is a sports journalist with extensive experience covering football and basketball championships. Known for factual accuracy and an engaging, dynamic writing style.