According to engadget, the European Commission has fined Elon Musk’s X a whopping €120 million, which is roughly $140 million. This is the first major non-compliance decision under the EU’s new Digital Services Act (DSA). The fine stems from three main violations: the “deceptive design” of X’s paid blue checkmark verification system, a lack of transparency in its advertising repository, and the failure to provide adequate access to public data for researchers. The EU argues the current checkmark system, which anyone can buy, misleads users about account authenticity and opens them up to scams. X has 60 working days to formally respond on the checkmark issue and 90 days to submit an action plan for the ad and data problems. Failure to comply could lead to even more financial penalties.
The core of the problem: deceptive design
Here’s the thing about the blue checkmark issue: it’s fundamentally about trust. Before Musk bought Twitter, that blue badge meant the platform had vetted the account holder’s identity. It was a signal, however imperfect, of authenticity. Now, it’s a subscription feature of X Premium. The EU isn’t saying you can’t sell verification. They’re saying you can’t sell something that looks identical to the old, trusted system without making it crystal clear that no verification actually happened. It’s a classic bait-and-switch in the EU’s view. So when a user sees a blue check on a post about a “crypto opportunity,” they might assume it’s a legit financial advisor, not just some guy who paid $8. That’s where the “deceptive” part comes in, and honestly, it’s hard to argue with the logic.
Ads and data: the less flashy big deals
While the blue check fine grabs headlines, the other two violations might be more significant in the long run. The DSA requires major platforms to have a searchable, functional ad repository. This lets anyone see who paid for an ad, how much they spent, and who the target audience was. The EU says X’s repository has “design features and access barriers” that make it basically useless for spotting disinformation campaigns or shady political ads. And then there’s the researcher data access. Platforms are supposed to give vetted researchers data to study systemic risks like election interference or public health misinformation. The Commission claims X’s process is so prohibitive it “effectively undermines” this research. These aren’t just cosmetic issues; they strike at the heart of platform accountability. Can you really regulate what you can’t see or study?
What this means for X and the web
This is a landmark moment. It’s the first big DSA fine, and it’s a shot across the bow for every other major platform operating in Europe. The message is clear: the era of self-regulation is over. The EU is willing to back its rules with enormous financial teeth. For X specifically, the path forward is messy. They could fight the decision, but that’s a long and expensive legal battle against a regulator with deep pockets and a clear mandate. More likely, they’ll have to redesign their checkmark system—maybe with a different color or a “paid” label—and seriously overhaul their back-end systems for ads and data. And look, if you think this is just an EU problem, think again. Where the EU goes with tech regulation, other jurisdictions often follow. This $140 million fine isn’t just a bill for past mistakes. It’s a down payment on a whole new, more transparent, and more accountable era for social media. Whether platforms like X want to live in that era is the real question.
