European Commission Fines X €120 Million for Violating Digital Services Act Transparency Rules - Trance Living

European Commission Fines X €120 Million for Violating Digital Services Act Transparency Rules

The European Commission has imposed a €120 million ($140 million) penalty on X, the social media platform owned by Elon Musk, citing multiple breaches of the European Union’s Digital Services Act (DSA). The decision, announced Friday in Brussels, accuses the company of misleading users with its blue checkmark program, failing to provide a transparent advertising repository, and denying researchers access to public data.

Findings of the Two-Year Investigation

The ruling follows a probe that began shortly after the DSA was adopted in 2022. According to the Commission, investigators concluded that X’s verification badge design could mislead users about the authenticity or status of an account. Regulators also determined that the company’s ad library lacks the required detail on political and commercial messages, and that external researchers have been unable to obtain public data needed to study platform risks.

Henna Virkkunen, the Commission’s executive vice president for tech sovereignty, security and democracy, said the decision reflects the EU’s commitment to enforcing the DSA. She added that the fines aim to protect users’ rights and ensure that large online platforms remain accountable for how they present information and handle advertising.

Compliance Deadlines and Possible Additional Fines

The Commission has given X 60 days to present a plan explaining how it will modify the blue checkmark system to prevent user deception. The company has 90 days to detail how it will overhaul its advertising repository and deliver data access for researchers. Failure to meet these deadlines could lead to periodic penalty payments, which would be calculated as a percentage of the platform’s global revenue until full compliance is verified.

In a brief response posted on X, Musk dismissed the Commission’s announcement with a one-word expletive. The company did not issue a formal statement addressing the investigation’s specific findings or outlining immediate steps toward compliance.

Context of Broader EU Tech Regulation

The fine marks the first formal non-compliance decision under the DSA, which sets obligations for very large online platforms on content moderation, transparency and data access. The regulation complements other major EU statutes, including the Digital Markets Act and proposed rules on artificial intelligence, all intended to curb the market power of major technology firms. Additional background on the DSA can be found on the European Commission’s official policy page.

The action against X comes one day after EU regulators opened a separate antitrust investigation into Meta Platforms over changes to WhatsApp that could allow artificial intelligence providers to access user data. The back-to-back announcements underscore the bloc’s increasingly assertive posture toward U.S. technology giants operating within its jurisdiction.

Meanwhile, officials in Washington have urged Brussels to reconsider aspects of the DSA, the Digital Markets Act and forthcoming AI legislation, arguing that certain provisions may disproportionately affect American companies. EU policymakers have signaled that they intend to move forward with enforcement, insisting that the rules apply equally to all firms offering large-scale digital services in the 27-member bloc.

European Commission Fines X €120 Million for Violating Digital Services Act Transparency Rules - financial planning 86

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Next Steps for X

Under the terms of the decision, X must describe the technical and procedural changes it intends to implement to bring its verification, advertising and data-sharing practices into line with the DSA. After submitting its remediation plan, the company will be subject to ongoing monitoring by the Commission, which retains the authority to assess whether the proposed measures are adequate and timely.

If X fails to meet the outlined requirements or is found to provide incomplete information, the Commission may impose additional periodic fines until compliance is achieved. Such penalties would be separate from the €120 million imposed Friday and could accumulate rapidly if corrective steps are delayed.

Regulators emphasized that the DSA’s enforcement framework applies to any platform with more than 45 million monthly active users in the EU. Companies that fall within this category are designated “very large online platforms” and face stricter obligations related to content moderation, user protection and transparency. X, which has millions of users across Europe, was formally placed in this tier when the DSA entered into force.

The Commission did not specify when it will publicly disclose the compliance plans submitted by X or how it will evaluate progress toward meeting each obligation. However, officials confirmed that updates will be made available once the company’s proposals are reviewed and further enforcement steps are determined.

Crédito da imagem: Aytug Can Sencar | Anadolu | Getty Images

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