eu fines x 140 million over deceptive The European Union has served Elon Musk’s X with a €120 million (about $140 million) penalty for violating the bloc’s digital service rulebook, in part for the “deceptive design” of its blue checkmark.
eu fines x 140 million over deceptive
Overview of the Fine
Today’s announcement marks a significant milestone as it is the first instance of a company being fined under the landmark Digital Services Act (DSA). This legislation aims to curb “illegal and harmful activities” on online platforms, reflecting the EU’s commitment to ensuring a safer digital environment for its citizens. The fine follows a comprehensive investigation into X that commenced in December 2023, highlighting the EU’s proactive stance in regulating digital services.
Background on the Digital Services Act
The Digital Services Act, which came into effect in late 2020, was designed to create a safer online space by imposing stringent requirements on tech companies. These requirements include obligations related to advertising transparency, data access for researchers, and the prohibition of “dark patterns.” Dark patterns are deceptive interface features that manipulate users into making choices they might not otherwise make. The DSA represents a significant shift in how the EU approaches digital regulation, aiming to hold companies accountable for their practices.
Details of the Violations
In July 2024, the EU concluded that X was failing to meet several obligations outlined in the DSA. The platform was specifically criticized for:
- Advertising Transparency: X was found lacking in providing clear information about advertisements, which is crucial for users to make informed decisions.
- Data Access for Researchers: The platform did not adequately facilitate access to data for researchers, hindering efforts to study the impact of online content and disinformation.
- Deceptive Design Features: The blue checkmark system was highlighted as particularly problematic. By allowing anyone to pay for verification, it blurred the lines between authentic and inauthentic accounts, making it difficult for users to discern credible sources.
Implications of the Fine
The €120 million fine serves as a warning not only to X but also to other tech companies operating within the EU. The European Commission emphasized that while the DSA does not mandate user verification, it explicitly prohibits platforms from misleading users about verification status. Henna Virkkunen, the EU’s tech chief, stated, “Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU.” This statement underscores the EU’s commitment to protecting users’ rights and restoring trust in online environments.
Potential Consequences for X
X now faces a critical juncture. The company has 60 working days to inform the EU of the measures it will implement to address the deceptive use of blue checkmarks. Additionally, it has 90 days to outline its planned fixes for the other violations. Failure to meet these deadlines could result in further penalties, which could escalate the financial repercussions for the company.
Financial Context
The EU has the authority to impose fines of up to 6 percent of a company’s global revenue for violations of the DSA. Given that X is a private company—purchased by Musk for $44 billion in October 2022 and subsequently acquired by his artificial intelligence company, X AI, in March 2025 for $33 billion—the exact financial implications of the fine remain somewhat ambiguous. The potential maximum penalty could have been significantly higher, depending on X’s global revenue figures.
Stakeholder Reactions
The fine has elicited varied reactions from stakeholders, including lawmakers, industry leaders, and the general public. European lawmakers have expressed satisfaction with the decision, viewing it as a necessary step toward holding tech companies accountable. Reports indicate that regulators deliberated carefully on the size of the fine, aiming to make an example of X while considering the potential backlash from the U.S. government.
Political Considerations
There are political dimensions to this situation as well. Musk has been vocal about his concerns regarding EU regulations, and his relationship with former President Donald Trump has added another layer of complexity. Musk, along with other U.S. tech leaders, has urged the U.S. administration to intervene and prevent what they perceive as overreach by the EU. This dynamic raises questions about the future of U.S.-EU relations in the tech sector and the potential for retaliatory measures.
Ongoing Investigations
The EU’s scrutiny of X is not limited to the recent fine. The ongoing investigation into the platform’s moderation practices and the dissemination of illegal or harmful content continues to unfold. This investigation could lead to additional penalties, further complicating X’s operational landscape. The EU has previously criticized X for rising levels of disinformation, particularly following Musk’s acquisition of the platform.
Concerns Over Disinformation
Since Musk took control of X, concerns have escalated regarding the platform’s role in the spread of disinformation. In January 2024, EU lawmakers pledged to “energetically” advance the investigation into X, particularly in light of Musk’s promotion of controversial political figures and far-right personalities. This scrutiny reflects broader societal concerns about the impact of social media on democratic processes and public discourse.
Future Outlook for X
The fine and ongoing investigations present significant challenges for X as it navigates a complex regulatory environment. The company must not only address the immediate concerns raised by the EU but also consider its long-term strategy in light of evolving regulations. As the digital landscape continues to change, X will need to adapt to maintain user trust and comply with regulatory requirements.
Potential for Appeal
X has the option to appeal the fine, which could prolong the resolution of this issue. However, an appeal may also draw further attention to the company’s practices and could lead to additional scrutiny from regulators. The decision to appeal will likely weigh the potential benefits against the risks of increased regulatory attention.
Conclusion
The €120 million fine imposed on X by the European Union marks a pivotal moment in the ongoing efforts to regulate digital platforms. As the first company to face penalties under the Digital Services Act, X’s situation serves as a cautionary tale for other tech companies operating in the EU. The implications of this fine extend beyond financial penalties; they signal a broader commitment to user protection and accountability in the digital space. As X navigates these challenges, the outcomes will likely shape the future of digital regulation and the responsibilities of tech companies in safeguarding user rights.
Source: Original report
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Last Modified: December 5, 2025 at 5:36 pm
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