Brussels issues first major DSA non compliance ruling
The European Commission has fined social media platform X 120 million euros (about $140 million) for violating transparency rules under the Digital Services Act, marking one of the bloc’s most forceful actions yet against a U.S. tech company. After a two year investigation, regulators concluded the platform misled users through the design of its blue checkmark system, failed to maintain a transparent advertising repository, and blocked researchers from accessing public data.
The DSA, enacted in 2022, aims to regulate large online platforms by imposing strict requirements around safety, transparency, and accountability. European officials said X’s conduct fell far short of those standards. Henna Virkkunen, executive vice president for tech sovereignty, security and democracy, said in a statement that “deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU.”
Deadlines set for compliance with EU demands
Under the ruling, X must outline a plan within 60 days to correct what regulators described as “deceptive” blue checkmark practices. The platform also has 90 days to submit a remediation strategy for its advertising transparency failures and its refusal to provide researcher access to public data. If it does not comply, the Commission warned it may impose ongoing penalty payments.
The decision holds significant implications for how X labels accounts and manages the visibility of promotional content. Since its acquisition and redesign, the platform has shifted its verification system into a paid feature, prompting concerns from policymakers and researchers over misinformation, impersonation risks, and the blending of authentic and subscriber content.
X has not yet issued a public comment on the fine or the required corrective measures.
Broader regulatory pressure on U.S. tech companies
The ruling comes as part of a wider European crackdown on dominant tech platforms. Just one day earlier, Brussels opened an antitrust investigation into Meta over a policy that could limit AI providers’ ability to use WhatsApp for customer communications. Google and Apple have also faced major fines this year under EU competition rules.
The U.S. government has increasingly pressed European authorities to ease requirements in the Digital Services Act, Digital Markets Act and upcoming AI regulations, arguing they disproportionately affect American firms. European regulators, however, say the rules are essential to ensure transparency, protect users, and prevent unfair market practices.
With this decision, the European Commission has issued its first non compliance ruling under the DSA, setting a precedent for future enforcement and reinforcing the bloc’s willingness to confront large tech platforms over user rights and accountability.