EU Slaps X with €120 Million Fine for Violating Online Transparency Rules – Here’s What Happened

• Why Did the EU Fine X €120 Million?
• How Does the DSA Work, and Is It Really About Censorship?
• How Does This Compare to Other Big Tech Fines?
• What’s Next for X and the EU’s Tech Regulations?
• FAQs: Your Burning Questions Answered

The European Union has fined Elon Musk’s social media platform X (formerly Twitter) a staggering €120 million ($140 million) for breaching digital transparency rules under the Digital Services Act (DSA). The penalty stems from misleading verification badges and restricted data access for researchers. This MOVE is part of the EU’s broader crackdown on Big Tech, following similar fines against Meta and Apple. Meanwhile, U.S. politicians like JD Vance accuse the EU of targeting American companies. Let’s break down the details.

Why Did the EU Fine X €120 Million?

The EU’s regulatory body found X guilty of deceptive practices, particularly around its blue verification badges. Previously, these badges indicated verified accounts (like celebrities or public figures). However, after Musk’s takeover in 2022, anyone could buy verification, leading to confusion and potential misuse by malicious actors. The EU argues this violates the DSA’s transparency requirements. Additionally, X was accused of withholding critical data from researchers, further breaching compliance rules.

How Does the DSA Work, and Is It Really About Censorship?

Elon Musk has repeatedly claimed the DSA is a FORM of censorship, but the EU insists it’s about fairness and safety. Under the DSA, platforms must:

• Clearly inform users when their accounts are restricted.
• Allow banned users to appeal decisions.
• Provide transparency in advertising and data access for research.

Henna Virkkunen, the EU’s tech policy lead, emphasized that fines are proportional to violations and not the primary goal. “If you follow the rules, you won’t be fined—it’s that simple,” she said.

How Does This Compare to Other Big Tech Fines?

X isn’t the first—or the biggest—target of EU regulators. Earlier this year:

• Apple was fined €500 million ($570 million) for restricting developers from informing users about alternative payment options.
• Meta faced a €200 million ($230 million) penalty for its controversial “pay or consent” ad model on Facebook and Instagram.

The EU’s aggressive stance aims to level the playing field for smaller competitors and protect consumer rights. However, critics, including Trump-era officials, argue it unfairly targets U.S. firms.

What’s Next for X and the EU’s Tech Regulations?

X must now address the violations or risk further penalties, which could reach up to 6% of its global annual revenue under the DSA. Meanwhile, the EU shows no signs of backing down, with more investigations likely. As for Musk, he’s doubling down on his criticism, calling the rules “anti-free speech.”

FAQs: Your Burning Questions Answered

What exactly did X do wrong?

The EU found X misled users with its blue checkmark system and failed to provide adequate data access for researchers, violating transparency rules.

Is this fine a form of censorship?

The EU denies this, stating the DSA is designed to create a safer online environment without suppressing free speech.

Could X face even bigger fines?

Yes—repeat violations could lead to penalties of up to 6% of its global revenue.