The European Union has issued a $140 million fine against X, the social-media platform owned by Elon Musk, after investigators concluded that the company repeatedly violated the bloc’s strict rules on hate speech, misinformation, and online transparency. The penalty is the first major enforcement action under the EU’s Digital Services Act (DSA), a sweeping law designed to hold large tech platforms accountable for harmful and illegal content.
According to the European Commission, X failed to comply with multiple core obligations of the DSA. Regulators found that the platform’s paid verification system — which allows users to purchase a blue checkmark — amounted to a “deceptive design” practice. The system, they said, misled users by suggesting that purchased checkmarks indicated authenticity, even though identity verification was not required. Officials argued that this design contributed to the spread of fake accounts, misinformation, and deceptive political messaging, especially during major news events.
The Commission also concluded that X did not provide adequate transparency around paid political and issue-based advertising. Under the DSA, large platforms must maintain a public, searchable database identifying who bought each ad, how much they spent, and how the ads were targeted. X’s system was deemed incomplete and inaccessible, limiting the ability of researchers, regulators, and citizens to monitor manipulation and misinformation.
A further violation involved X’s refusal to grant qualified researchers access to key platform data, which the DSA requires for analyzing online risks, including the spread of hate speech and foreign-backed propaganda. Regulators said the company failed to provide acceptable tools or data access despite months of requests, impeding oversight of harmful content.
The EU has given X 60 days to correct the deceptive-design features associated with the blue-check program and 90 days to overhaul its advertising transparency and research-access systems. Failure to comply could trigger even harsher penalties; under the DSA, fines can reach up to 6 percent of a company’s global annual revenue.
The ruling immediately sparked political reactions outside Europe. Several U.S. officials criticized the decision as an attempt to pressure an American-owned platform into adopting European norms on free expression. EU leaders pushed back, insisting the action is about safety and transparency rather than speech restrictions.
For X, the fine represents a significant escalation in its often-contentious relationship with global regulators. The company has faced mounting criticism since Musk’s takeover, with watchdog groups saying that staff cuts and policy changes have weakened its ability to moderate harmful content.
