EU Fines X €120 Million for Violating Digital Transparency Rules

The European Commission on Friday imposed a €120 million fine on X, after finding the social‑media platform in serious breach of key provisions of the Digital Services Act. The ruling follows a two‑year investigation into X’s compliance with requirements meant to safeguard users and ensure transparency on large online platforms.

Regulators identified three major violations: the sale of “blue checkmark” verification badges under a subscription model — a move deemed deceptive because it no longer reliably signified account authenticity; insufficient transparency in the platform’s ad‑database practices; and obstructing researcher access to public data such as ads and algorithmic metrics. These shortcomings, the Commission said, risk exposing users to scams, misinformation, and manipulation, while hindering independent scrutiny of platform activity.

Under the DSA — which took full effect across the 27‑nation bloc in 2023 — platforms are required to maintain clear ad registries, verify identifications, and enable data access for researchers. Failure to comply can result in fines up to 6% of global revenue. In asserting this fine, EU regulators underscored that the action is meant to enforce digital‑safety standards rather than censor speech.

X now has a defined period to submit plans for remedial action and comply with the DSA’s transparency and governance norms, or face potential further penalties.