European Commission Fines X 120 Million Euros for Transparency Violations Under Digital Services Act

On Friday, December 5, 2025, the European Commission levied its inaugural penalties under the Digital Services Act (DSA), imposing a substantial 120 million euro fine on the platform X, owned by Elon Musk. This action marks the first finalized instance of sanctions enforcement under the European Union's new legislation, which governs major online platforms regarding user safety and operational transparency.

The formal proceedings that culminated in this decision were initiated back in December 2023. The total penalty amount, equating to approximately 140 million US dollars, was apportioned across three distinct areas where X failed to comply with regulations. The first major infraction, accounting for 45 million euros, centered on the deceptive design of the paid 'blue checkmark' system. The Commission determined that because any user could purchase this status without undergoing substantive identity verification, the system misled the public about the authenticity of accounts on the platform.

The second violation, assessed at 35 million euros, related directly to a lack of transparency within X's advertising repository. Regulators found that the database of advertisements did not meet accessibility standards and critically lacked essential details, such as information identifying the actual advertiser. Completing the trio of penalties, a 40 million euro component was levied because X restricted researchers' access to publicly available platform data. The Commission argued that this denial hampered crucial efforts to study systemic risks across the European Union.

Hennä Virkkunen, the Executive Vice-President for Technological Sovereignty, Security, and Democracy, commented that the fine's magnitude reflects the 'nature of the infringement, the severity of the transgression for EU users, and the duration' of the identified breaches. The Commission has granted X a specific timeline to rectify these issues: 60 working days to resolve the 'blue checkmark' discrepancies, and 90 working days to present an action plan ensuring transparency for both the advertising repository and researcher access. Failure to comply within these windows could result in recurring penalty payments.

Coincidentally, on the same day, the Commission accepted binding commitments from TikTok regarding advertising transparency, thereby avoiding a fine on that specific count. Brussels' decision immediately sparked diplomatic friction with Washington. US Vice President J.D. Vance voiced sharp criticism, asserting that the EU 'must support free speech, not attack American companies.' US Secretary of State Marco Rubio characterized the move as 'foreign governments attacking all American technology platforms and the American people.'

Conversely, European officials lauded the enforcement action as proof of their resolve. France's Minister for Digital Affairs, Anne Le Hennanff, described the moment as 'historic,' while Germany's Minister Karsten Wildberger emphasized that EU rules 'apply to everyone, regardless of their origin.' Observers noted that the financial penalty itself was relatively moderate, given that the maximum penalty under the DSA framework can reach up to 6% of a company's annual global revenue.

Virkkunen, whose portfolio encompasses DSA enforcement, is currently overseeing broader investigations into X that commenced in December 2023, focusing on content moderation practices and information manipulation. This precedent-setting fine firmly establishes a boundary in the transatlantic dialogue concerning digital governance, underscoring the EU's sovereign right to apply its legislation to major market players operating within its jurisdiction.