The European Union has levied a roughly $140 million penalty against Elon Musk’s social media platform, X, marking the first time the bloc has issued a financial punishment under its sweeping Digital Services Act (DSA). The European Commission announced Friday that the platform’s paid “blue checkmark” system violates the law by misleading users about account authenticity.
The Commission’s findings focus heavily on the site’s design choices. Regulators argue that X’s decision to allow anyone to purchase verified status “deceives users,” breaching DSA obligations that prohibit “deceptive design practices.”
Beyond the checkmarks, the fine also addresses X’s alleged failure to provide transparency regarding advertisements and its restriction of data access for independent researchers.
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Henna Virkkunen, the Commission’s executive vice president for tech sovereignty, was blunt in her assessment of the platform’s compliance failures.
“Deceiving users with blue checkmarks, obscuring information on ads, and shutting out researchers have no place online in the EU,” Virkkunen stated. “With the DSA’s first non-compliance decision, we are holding X responsible for undermining users’ rights and evading accountability.”
The company has been given a 60-day deadline to present specific measures outlining how it intends to correct the infringements.
The regulatory action has already sparked friction across the Atlantic. Ahead of the formal announcement, U.S. Vice President JD Vance criticized the looming penalty as an attack on American enterprise and free expression.
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“Rumors swirling that the EU commission will fine X hundreds of millions of dollars for not engaging in censorship,” Vance posted Thursday night on X. “The EU should be supporting free speech not attacking American companies over garbage.”
Musk responded briefly to Vance’s defense with, “Much appreciated.”
The penalty comes amid ongoing debate over the DSA, which fully took effect in August 2023. While European regulators frame the law as a necessary tool to restore trust in the online environment, critics—including some U.S. tech leaders and free-speech advocates—have warned that the regulations could hinder speech and conflict with American internet standards.
Similar tensions flared in January when Meta CEO Mark Zuckerberg criticized EU data laws, though the bloc dismissed his claims as misleading.
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