EU Fines X Platform $140 Million for Violating Content Regulation Rules

European regulators have imposed a €140 million ($140 million) fine on X, the social media platform formerly known as Twitter, for multiple violations of the European Union’s landmark Digital Services Act (DSA). This represents the first major enforcement action under the sweeping legislation designed to hold tech giants accountable for content moderation and transparency.

The European Commission’s investigation found that X, under Elon Musk’s ownership, repeatedly failed to comply with core obligations regarding hate speech, misinformation, and transparency requirements. The decision comes after months of escalating tensions between the platform and EU regulators.

Investigators specifically targeted X’s paid verification system—the blue checkmark program that Musk dramatically overhauled after acquiring the company in 2022. Regulators determined the system constitutes a “deceptive design” practice that misleads users by implying verified authenticity without requiring actual identity verification.

“This verification system has created a dangerous environment where impersonation, misinformation, and coordinated deception can flourish,” said a Commission spokesperson. The investigation found numerous instances where paid blue checkmarks were used to spread false information during elections, natural disasters, and international conflicts.

The Commission’s findings also highlighted X’s failure to maintain adequate transparency around political and issue-based advertising. Under the DSA, large platforms must maintain comprehensive, searchable databases that show who purchased each advertisement, their targeting parameters, and spending amounts. X’s implementation was deemed “severely deficient,” preventing researchers and citizens from effectively monitoring potential manipulation campaigns.

Perhaps most concerning to regulators was X’s consistent refusal to grant qualified researchers access to platform data required under the DSA. This data access is considered essential for independent analysis of online risks, including foreign influence operations and hate speech patterns. Despite repeated requests over several months, X failed to provide acceptable tools or access mechanisms.

“When platforms operate in the European market, compliance with our rules is not optional,” said Thierry Breton, EU Commissioner for Internal Market. “The days of big tech platforms setting their own rules are over.”

The EU has established a timeline for X to address these violations. The company has 60 days to correct issues with its blue checkmark program and 90 days to overhaul its advertising transparency and research access systems. Non-compliance could trigger additional penalties reaching up to 6 percent of X’s global annual revenue.

Industry analysts note this enforcement action signals the EU’s willingness to use its regulatory muscle against even the most prominent tech platforms. Since taking effect in 2023, the DSA has established Europe as the world’s most aggressive regulator of digital services.

The ruling has sparked mixed reactions globally. Digital rights groups have welcomed the decision, while some free speech advocates, particularly in the United States, have criticized it as regulatory overreach. Several U.S. officials characterized the action as an attempt to impose European content standards on an American platform.

For X, the fine represents another challenge in its turbulent journey under Musk’s leadership. Since his $44 billion acquisition, the platform has undergone dramatic changes, including significant staff reductions in content moderation teams. Independent researchers have documented substantial increases in hate speech and misinformation on the platform following these changes.

X issued a statement indicating it would appeal the decision, arguing the Commission applied “retroactive standards” and failed to provide adequate guidance on compliance. The company maintained it has made “good faith efforts” to meet the DSA requirements while balancing free expression principles.

This enforcement action against X may signal similar scrutiny for other major platforms operating in Europe, as regulators have indicated investigations into several other tech companies are ongoing. The decision establishes important precedents for how the DSA will be applied to global social media platforms in the coming years.