Elon Musk's X Fined €120m by EU for Digital Services Act Breaches
The European Commission has fined Elon Musk's social media platform X €120 million for breaches of the Digital Services Act (DSA), marking the first non-compliance decision under the new EU digital regulations. The fine breaks down into €45 million for introducing a paid blue-tick verification system, €35 million for failures in advertising regulation, and €40 million for lack of data access affecting researchers.
The Commission found that X engaged in deceptive practices linked to the blue tick verification and did not maintain transparency in advertising as required by the DSA. Specifically, the EU mandates that platforms provide a public list of advertisers to protect users against scams and political manipulation, a requirement that X failed to meet. Moreover, X did not provide adequate access to public data for researchers, violating transparency obligations.
The investigation was initiated in December 2023 and this ruling concludes a part of a two-year inquiry. However, three other investigations remain ongoing, focusing on issues including content moderation, algorithms, incitement to violence or terrorism, and measures for handling illegal content.
Under the DSA, penalties can reach up to 6% of worldwide revenue. X's estimated 2024 revenue stood between $2.5 and $2.7 billion. The platform has 90 days to submit an action plan addressing the fine and retains the right to appeal the decision.
Reactions have been mixed: US official JD Vance criticized the EU's actions, while Elon Musk responded to the fine. EU official Henna Virkkunen condemned the deceptive practices uncovered. Meanwhile, TikTok has committed to establishing advertising repositories to enhance transparency in compliance with the DSA.
