EU Strikes First Under Digital Laws: Elon Musk's X Hit with €120 Million Fine

December 22, 2025

In a landmark enforcement action, European regulators have imposed a substantial fine on Elon Musk's social media platform X, escalating tensions between Brussels and one of the world's most influential tech moguls.

Historic Penalty: €120 Million for Transparency Breaches

The European Commission announced the €120 million (approximately $140 million) sanction earlier this month, marking the first non-compliance decision under the bloc's ambitious Digital Services Act (DSA). The ruling stems from a two-year investigation into practices that authorities deemed deceptive and opaque.

Broken down, the fine addresses multiple violations: €45 million for the misleading use of blue checkmarks, €35 million for inadequate advertising transparency, and €40 million for restricting researcher access to public data.

The DSA, designed to hold large online platforms accountable, requires greater openness in verification systems, ad repositories, and data sharing to combat misinformation and protect users.

The Blue Checkmark Controversy at the Core

Central to the case is X's overhaul of its verification system following Musk's acquisition. Previously reserved for authenticated notable accounts, the blue tick became available to any paying subscriber under the Premium model.

Regulators argued this shift created a "deceptive design," allowing unverified users to appear legitimate without meaningful identity checks, potentially amplifying scams, impersonations, and misinformation.

This change, they said, undermined user trust and evaded proper accountability in a platform influencing public discourse across Europe.

Broader Implications Amid Ongoing Probes

While this fine focuses on transparency, separate investigations into X's content moderation, algorithmic promotion of harmful material, and handling of illegal content remain active.

The penalty, though significant, falls well below the DSA's maximum of 6% of global annual turnover, reflecting a calibrated approach in this debut enforcement.

X has the option to appeal the decision through European courts, with deadlines approaching for remedial action plans.

Fiery Backlash and Transatlantic Tensions

The ruling ignited sharp criticism from Musk and U.S. officials, who framed it as an assault on free speech and American innovation.

Musk dismissed the decision outright, while high-level voices in Washington decried it as overreach, linking it to broader trade frictions and threats of retaliation.

In response, X restricted the Commission's advertising capabilities on the platform, further straining relations.

European leaders countered that the DSA applies equally to all major platforms, emphasizing user protection over nationality.

A New Era of Digital Oversight

This precedent-setting fine underscores the EU's determination to enforce its digital framework, even against powerful global entities.

As appeals loom and additional cases progress, the clash highlights deepening divides over online governance, free expression, and regulatory sovereignty.

With tech giants increasingly in the crosshairs, the outcome could reshape how social media operates worldwide, balancing innovation against accountability in an ever-connected digital landscape.