Why the EU has issued a fine of 120 million euros to social media platform 'X': Video
The European Commission has fined social media platform X €120 million ($140 million) for violating transparency rules under the Digital Services Act (DSA), marking the first major penalty issued under the new law.
Commission spokesperson Thomas Regnier said the platform misled users by allowing anyone to buy a verification badge without meaningful identity checks. He also said X’s advertising library “does not work properly” and that the company has failed to provide adequate data access to researchers, as required by the DSA.
“X deceives users,” Regnier said. “Anyone can pay to obtain verified status, and X does not meaningfully verify who is behind it.”
The investigation began nearly two years ago, shortly after the DSA took effect in 2023. The law obliges large online platforms to avoid misleading design features, clearly label advertising, and ensure researchers can access public data for safety and transparency monitoring.
According to the Commission, the fine is divided into three parts: approximately €45 million for misleading verification practices, €35 million for unclear advertising transparency, and €40 million for improper access to researcher data. The total is far below the maximum allowed penalty, up to six percent of a company’s global annual revenue.
Elon Musk, owner of X, reacted sharply on the platform, replying “Bullshit” under the EU’s announcement and sharing posts accusing the Commission of targeting free speech and American tech firms.
This story is written and edited by the Global South World team, you can contact us here.
