Tech Beetle briefing GB

Elon Musk’s X Fined €120m by EU in First Enforcement Under Digital Services Act

Essential brief

Key facts

The EU fined Elon Musk’s X €120 million for breaching the Digital Services Act.

Violations included deceptive blue tick verification, lack of ad transparency, and restricted data access for researchers.

The ruling is the first enforcement under the DSA, reflecting the EU’s commitment to regulating major tech platforms.

Musk has 90 days to respond and may appeal the decision.

The case highlights ongoing tensions between US tech companies and EU regulators over digital governance.

Highlights

The EU fined Elon Musk’s X €120 million for breaching the Digital Services Act.

Violations included deceptive blue tick verification, lack of ad transparency, and restricted data access for researchers.

The ruling is the first enforcement under the DSA, reflecting the EU’s commitment to regulating major tech platforms.

Musk has 90 days to respond and may appeal the decision.

Elon Musk’s social media platform, X, formerly known as Twitter, has been fined €120 million (£105 million) by the European Commission for breaching new EU digital regulations.

This marks the first major enforcement action under the Digital Services Act (DSA), which came into force in 2023 to regulate content and transparency on large tech platforms.

The investigation, which spanned two years, identified three primary violations: misleading use of the blue tick verification badge, lack of transparency in advertising, and failure to provide researchers with required access to public data.

The blue tick, previously reserved for verified public figures and journalists, was made available to any user subscribing to X Premium, which the EU deemed deceptive and undermining user trust.

Additionally, the platform did not maintain a public and searchable advertising repository, a key DSA requirement designed to combat illegal scams, fake ads, and coordinated political campaigns.

The commission also found that X failed to grant researchers access to data necessary for monitoring political content and misinformation.

The €120 million fine is divided into €45 million for the verification breach, €35 million for advertising transparency violations, and €40 million for data access failures.

Despite the fine, Musk has 90 days to submit an action plan and may appeal the ruling, as other tech giants like Apple have done.

The EU’s move signals its commitment to holding major tech companies accountable, regardless of their origin, with 25 companies including TikTok under DSA scrutiny.

The ruling has sparked criticism from some US officials, including Vice President JD Vance, who argued the EU should support free speech rather than penalize American firms.

The decision may also strain transatlantic relations amid ongoing trade tensions.

Meanwhile, the EU continues investigations into X’s handling of illegal content, misinformation, and content moderation algorithms following Musk’s acquisition and rebranding of Twitter.

This case exemplifies the EU’s broader efforts to enforce digital transparency and protect users’ rights in an evolving online landscape.