The European Commission announced on December 5, 2025, that it has imposed a €120 million fine on X, the social media platform owned by Elon Musk, marking the first enforcement action under the bloc’s Digital Services Act (DSA). This legislation, which took effect in 2022, aims to promote transparency and accountability among large online platforms to protect users from harmful content and misinformation. The penalty stems from a two-year investigation into X’s practices, highlighting ongoing tensions between European regulators and American technology firms.
The fine addresses three specific violations of the DSA’s transparency requirements. First, the Commission cited X’s paid “blue checkmark” verification system as a deceptive design, noting that allowing users to purchase badges without meaningful identity checks misleads people about account authenticity. Second, X failed to maintain a sufficiently transparent advertising repository, which obscures details on ad targeting and could enable scams or misleading political content. Third, the platform blocked researchers’ access to public data, hindering studies on systemic risks such as disinformation spread.
European Commission officials emphasized that these breaches undermine user trust and the DSA’s goals. Internal Market Commissioner Henna Virkkunen described the penalty as “proportionate,” stating it was “calculated based on the nature of the infringements, their gravity in terms of affected EU users and their duration.” The Commission further explained in its press release that X’s blue checkmark system “deceives users” by not verifying who controls accounts, while the ad repository lacks the clarity needed to distinguish promotions from organic posts. On the data access issue, regulators noted that denying researchers tools to analyze public content violates obligations to support independent oversight.
To achieve compliance, X must implement changes across these areas within specified deadlines set by the Commission. For the blue checkmark, the platform needs to either reinstate rigorous verification processes or clearly disclose that badges indicate payment rather than authenticity. Regarding advertising, X will have to enhance its repository with detailed, searchable records on ad sponsors, targeting criteria, and spending. On researcher access, the company must provide application programming interfaces or similar tools for querying public posts, ensuring data availability without compromising privacy. These steps align with broader DSA mandates for very large online platforms, which face ongoing monitoring.
Noncompliance carries risks of escalating penalties under the DSA framework. The law permits the Commission to issue periodic fines up to 6 percent of a company’s global annual revenue for persistent violations, potentially amounting to billions for X. Regulators have indicated that failure to meet remediation deadlines could trigger additional sanctions, building on this initial €120 million assessment. Such measures underscore the EU’s commitment to iterative enforcement, as outlined in the act’s provisions for corrective actions.
The decision has sparked sharp reactions across the Atlantic, with Musk and U.S. officials framing it as an overreach on free expression. Musk dismissed the announcement outright on X, replying to the Commission’s post with a single word: “Bullshit.” He later escalated his criticism, writing, “The EU woke Stasi commissars are about to understand the full meaning of the ‘Streisand Effect,’” and adding, “The ‘EU’ imposed this crazy fine not just on @X, but also on me personally, which is even more insane! Therefore, it would seem appropriate to apply our response not just to the EU, but also to the individuals who took this action against me.”
Prominent U.S. lawmakers echoed Musk’s sentiments, portraying the fine as targeted censorship. Texas Senator Ted Cruz called it “an abomination,” declaring, “It’s an attack on a great American job creator & it’s an attack on the free speech of every American. Trump should impose SANCTIONS until this travesty is reversed.” Vice President JD Vance urged support for open discourse, posting, “The EU should be supporting free speech not attacking American companies over garbage.” Secretary of State Marco Rubio went further, asserting, “The European Commission's fine isn't just an attack on X, it's an attack on all American tech platforms and the American people by foreign governments.” Federal Communications Commission Chair Brendan Carr accused Europe of penalizing success, stating, “Once again, Europe is fining a successful U.S. tech company for being a successful U.S. tech company.”
As X considers an appeal, which could prolong the dispute, the case illustrates deepening divides over digital regulation. European authorities view the DSA as essential for user safety, while U.S. voices warn of extraterritorial interference. Observers anticipate this episode may influence future transatlantic tech policies.