The European Commission (EC) has taken decisive action against X social media, announcing a substantial €120 million (around $140 million) fine. This penalty is the result of X breaching several critical transparency obligations under the bloc’s landmark Digital Services Act (DSA). This ruling is significant as it marks the first major non-compliance decision levied by the EU under this key new regulation.
The core of the issue? The EC claims X has failed to provide a safe, predictable, and trustworthy online environment, mainly by deceiving users and limiting the information available to the public and researchers.
The Three Main Accusations
The fine, which followed an investigation initiated in 2024, is broken down into three major areas of transparency failure:
- Deceptive Blue Checkmark System:The EU commission is very clear: X’s system of providing the ‘blue checkmark’ for ‘verified accounts’ is misleading. The commission argues that because anyone can simply pay for the badge without X conducting any meaningful identity verification, users are left exposed. This deception makes it incredibly difficult for people to judge whether an account or the content it shares is authentic, which regulators say opens the door toimpersonation fraudand online scams. The DSA prohibits online platforms from falsely claiming verification when it hasn’t actually taken place (Source 1.1, 1.3).
- Opaque Advertising Repository:X’s public advertisement repository is accused of failing to meet the DSA’s strict transparency and accessibility requirements (Source 1.2). For researchers and civil society groups trying to monitor the spread of disinformation and scams, X’s repository is critically deficient. It is missing key data, such as the actualcontent and topic of the advertisement, as well as thelegal entity that paid for it(Source 1.4). Furthermore, the commission points to excessive delays in processing requests for access, which undermines the entire purpose of having the repository (Source 1.1).
- Barriers for Researchers’ Data Access:The third infringement concerns X’s refusal or effective prohibition on independent access to its public data. The platform’s terms of service reportedly prohibit eligible researchers from accessing the data, including through standard techniques like scraping (Source 1.3). Imposing unnecessary barriers on data access hinders independent research into serioussystemic riskslike information manipulation and coordinated influence campaigns across the European Union (Source 1.1).
What Happens Next?
This fine is not the final step; it sets up a clear timeline for X to change its ways:
- Blue Checkmark Fix:X has60 working daysto inform the European Commission of the specific measures it will take to end the infringement related to the deceptive blue checkmark.
- Ad Repository and Data Access:The platform has90 working daysto present an action plan detailing how it will address the issues surrounding the advertising repository and researcher data access.
The Board of the Digital Services Act will review X’s plan, and the Commission will then issue a final decision with a reasonable period for implementation. Failure to comply with the DSA decision may lead to even more severe financial penalties, including periodic penalty payments based on the company’s worldwide daily turnover (Source 1.1). This outcome signals the EU’s unwavering commitment to enforcing its new digital rulebook.
Source from Gizchina
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