The European Union has issued a €120 million (approximately $140 million) fine to Elon Musk’s company, X, for breaching the Digital Services Act (DSA). This penalty is significant as it marks the first enforcement of the DSA, which aims to address “illegal and harmful activities” on digital platforms. The EU initiated an investigation into X in December 2023, focusing on several compliance issues.
According to EU tech chief Henna Virkkunen, the fine arises from practices deemed deceptive, such as the use of blue checkmarks that mislead users about account authenticity. She emphasized that the DSA is designed to protect users and ensure accountability from online platforms.
In July 2024, preliminary findings indicated that X had been non-compliant with regulations pertaining to advertising transparency, access to data for researchers, and the use of “dark patterns,” which are interface features that can mislead users. The blue checkmark feature was specifically criticized for allowing users to pay for verification, complicating the verification process of accounts.
The DSA permits the EU to impose fines of up to 6 percent of a company’s global revenue for violations. Given X’s private status—having been acquired by Musk for $44 billion in October 2022 and later by his AI firm X AI for $33 billion in March 2025—the potential fines could be substantial, although the exact amount is uncertain. X retains the option to appeal the fine or negotiate a settlement by complying with DSA requirements.
Meanwhile, the ongoing investigation also examines X’s content moderation practices and its role in the spread of illegal or harmful content, which could lead to further penalties in the future.
Source: https://www.theverge.com/news/645154/eu-fines-x-dsa-violations-xai-elon-musk