European Commission Fines X €120 Million for DSA Breaches
The European Commission issued its first formal non compliance decision under the Digital Services Act, fining Elon Musk’s platform X €120 million for multiple transparency failures. The ruling signals a new era of regulatory scrutiny that could reshape platform design, advertising practices, and academic access to social data across Europe and beyond.
On December 5, 2025 the European Commission imposed a €120 million penalty on X, marking the first enforcement action taken under the Digital Services Act. The decision found that the platform committed several transparency breaches, including a redesigned paid verification system, weaknesses in its advertising repository, and the refusal to provide required public data access to independent researchers.
The Commission described the updated verification scheme, popularly known as the blue check, as deceptive because paid verification no longer reliably indicated authentic accounts. Regulators said the change undermined user trust and increased the risk of impersonation and manipulation on the platform. The Commission assigned roughly €45 million of the total penalty to that violation.
A further €35 million was levied for shortcomings in X’s advertising register. The repository was judged insufficiently transparent, making it harder for regulators, journalists and the public to trace who financed political and commercial advertising. The finding underscores growing European concern about the opacity of digital ad ecosystems and the potential for covert influence during election cycles.
The remaining €40 million was imposed for blocking researchers’ access to public data that the DSA requires platforms to make available for independent study. The Commission framed that requirement as essential to enabling external scrutiny of platform safety, algorithmic effects and the spread of harmful content. Regulators argued that denying researchers access impedes evidence based policy making and public accountability.
Under the DSA framework X has a limited period, typically between 60 and 90 days, to submit measures that would bring the platform into compliance. If those measures are not accepted or implemented the Commission may impose further periodic penalties until the breaches are remedied. The proportional breakdown of the fine is intended to tie specific penalties to distinct legal failings.
The ruling has immediate political and commercial reverberations. Senior U.S. administration officials publicly criticized the decision as unfairly targeting American tech platforms. X’s owner Elon Musk denounced the move on the platform. The Commission stressed its action enforces EU consumer protection and electoral transparency obligations rather than censoring content.
Legal experts say the decision establishes an important precedent. As the first major DSA enforcement, it clarifies that design choices that affect how users perceive authenticity and transparency are subject to regulation. The case also highlights the law’s leverage over platform business models that monetize verification and advertising while controlling access to research data.
The outcome will be closely watched by other very large online platforms and by governments worldwide. For researchers, the Commission’s emphasis on data access is a win for independent analysis of online harms. For users and democratic institutions, the ruling signals that regulators are prepared to intervene when platform features materially affect trust and transparency. For X and similar companies, it presents a stark choice between redesigning core features and facing continuing legal and financial consequences.
