European Union Fines Elon Musk’s X €120 Million for Violating Digital Transparency Rules

The European Union has imposed a massive penalty of €120 million (₹1,256 crore) on social media platform X (formerly Twitter), owned by Elon Musk. The fine was issued after X was found guilty of violating the Digital Services Act (DSA) — a law designed to regulate big tech companies for user safety and transparency.

This marks the first major enforcement action under the DSA across the 27 EU member countries.

First Major Action Under the Digital Services Act

After a two-year investigation, the European Commission concluded that X failed to comply with mandatory transparency and consumer protection requirements. The EU stated that X’s policies have increased risks of:

Cyber fraud

Misinformation

User confusion

Online manipulation

DSA rules require platforms to remove illegal content quickly, ensure user safety, maintain transparent advertising systems, and prevent deceptive digital practices.

Blue Tick System Sparks Controversy

One of the major violations highlighted by the EU is X’s controversial Blue Tick verification system.

Previously, verification badges were granted only to:

Government officials

Public figures

Verified journalists

Celebrities

However, under Elon Musk’s new paid subscription model, any user can purchase the verification badge for $8 per month.

The EU says this system:

Misleads users

Makes fake accounts appear legitimate

Increases impersonation attempts

Encourages online scams

The Commission concluded that X failed to ensure authenticity of verified accounts, making it harder for users to distinguish between real and fake profiles.

Lack of Advertising and Data Transparency

Under the DSA, platforms are required to maintain a publicly accessible database detailing:

Who paid for an advertisement

Who is being targeted

Why the ad is being shown

EU investigators found that X’s advertising transparency database was incomplete and lacked critical details.

Additionally, X reportedly imposed unnecessary technical restrictions on researchers seeking access to platform data — making it harder to study political propaganda, fake engagement, and misinformation campaigns.

EU’s Strong Message to Musk

Speaking on the ruling, EU Vice President Henna Virkkunen said:

“Misleading users with the Blue Tick program, hiding advertisement information, and restricting research access will not be tolerated in the European Union. The DSA exists to protect people.”

What Happens Next?

X may appeal the fine in European courts, but until then, the company must:

Fix transparency systems

Provide accurate ad disclosures

Establish stricter identity verification

Cooperate with researchers

Failure to comply may result in additional penalties or platform restrictions in the EU.