EU Fines Elon Musk's X Platform €120 Million for Violations of New Digital Services Act
The European Commission has fined Elon Musk's social media platform X €120 million for multiple breaches of the Digital Services Act (DSA), marking the first non-compliance decision under the new regulatory framework.
The penalty was broken down as follows: €45 million for the introduction of a purchasable blue verification tick that undermined authenticity, €35 million for violations of advertising regulations, and €40 million for failing to provide researchers with access to data as mandated by the DSA.
The Commission highlighted that X engaged in deceptive practices with the blue verification tick and lacked transparency in its advertising, notably by not providing a public list of advertisers intended to help detect scams and political manipulation. Additionally, X did not grant data access to researchers as required.
The investigation into X began approximately two years ago, with formal proceedings initiated in December 2023. This ruling addresses only a portion of the case as the broader investigation is ongoing.
Under the DSA, fines can reach up to 6% of a company's worldwide revenue; with X’s estimated 2024 revenue between $2.5 billion and $2.7 billion, the €120 million fine represents a significant portion but leaves room for further penalties.
X has 90 days to submit an action plan responding to the ruling and retains the right to appeal to the European Court of Justice.
Other pending investigations under the DSA into X concern content moderation and algorithms post-Musk takeover, issues related to incitement and terrorism, and the mechanism allowing users to flag illegal content.
Separately, the EU announced new commitments from TikTok to provide advertising repositories aimed at addressing transparency concerns under the DSA.
