Brussels Strikes Back: EU Slaps Elon Musk's X with €120 Million Fine Over Deceptive Practices
Published Date: 22 Dec, 2025
December 22, 2025
European regulators have delivered a major blow to Elon Musk's social media empire, fining the platform X €120 million in the first enforcement action under the bloc's sweeping Digital Services Act.
Landmark Ruling Targets Transparency Failures
The European Commission confirmed the penalty, citing three key violations uncovered during a prolonged investigation: the platform's paid blue checkmark system deemed "deceptive," an inadequate advertising transparency repository, and restricted access to public data for researchers.
This marks the inaugural non-compliance decision under the DSA, a framework aimed at curbing harmful online content, misinformation, and manipulative designs on major platforms.
The Blue Checkmark Deception: Heart of the Dispute
At the forefront of the Commission's concerns is X's revamped verification badge. Once a marker of authenticated identity for public figures, the blue tick now comes with a subscription fee, available to anyone willing to pay—without rigorous identity verification.
Regulators argue this shift misleads users into believing paid accounts are legitimately verified, heightening risks of impersonation, scams, and manipulation by bad actors.
While the DSA doesn't require verification systems, it strictly bans interfaces that falsely imply authenticity or employ deceptive designs.
Advertising and Data Access Shortfalls
Additional breaches include flaws in X's ad library, criticized for lacking searchability, critical details, and accessibility—hindering efforts to spot illegal or misleading promotions.
The platform was also faulted for erecting barriers to researcher access, including prohibitive terms against data scraping and cumbersome approval processes, thwarting independent scrutiny of systemic risks.
Proportional Penalty Amid Broader Scrutiny
The €120 million fine—far below the DSA's cap of 6% of global turnover—reflects factors like infringement duration, severity, and impact on EU users.
X has deadlines to propose fixes: 60 days for the checkmark issue and 90 days for broader remedies, with potential daily penalties for non-compliance.
Separate probes into content moderation and information manipulation continue, signaling ongoing pressure.
Transatlantic Tensions Flare Up
The decision has reignited debates over digital regulation, with sharp rebukes from across the Atlantic framing it as an assault on innovation and free expression.
Musk and allies dismissed the ruling vehemently, while EU officials insisted it focuses purely on transparency and user protection—not censorship.
In a related escalation, X later restricted the Commission's advertising account, amplifying the standoff.
Setting a Precedent for Big Tech Accountability
As the DSA's first bite proves potent, eyes turn to how X responds—and whether appeals or reforms follow.
This clash underscores Europe's resolve to rein in global tech giants, prioritizing safeguards in an increasingly volatile online ecosystem.
With appeals possible and further cases brewing, the battle over platform responsibility shows no signs of cooling, reshaping the rules of engagement for social media worldwide.
Date: 22 Dec, 2025
