The European Union has delivered a significant financial blow to Elon Musk's social media company, X, formerly known as Twitter. Regulators have imposed a hefty fine of 120 million euros (approximately USD 140 million) for the platform's failure to comply with the bloc's landmark digital regulations.
Why Was X Fined Under the Digital Services Act?
The penalty was announced by the European Commission following a comprehensive, two-year investigation launched under the Digital Services Act (DSA). This wide-ranging rulebook is designed to force online platforms to be more accountable for the safety and integrity of their digital spaces. The DSA, which became legally enforceable in August 2023, mandates that companies take proactive steps to protect European users, remove harmful or illegal content, and ensure transparency in how their algorithms function.
The law arms regulators with strong enforcement powers, allowing them to levy substantial penalties on companies that do not meet their obligations, making non-compliance a costly affair for tech giants operating in Europe.
The Specific Violations by X Platform
According to the Commission's findings, X was penalised for three distinct violations of the DSA's transparency requirements. A primary point of contention was the platform's system of blue checkmarks. Regulators determined that their "deceptive design" could mislead users and potentially expose them to scams and manipulation.
Furthermore, X was found lacking in its obligations concerning its advertising repository and for not providing adequate data access to researchers. This formal decision comes after the company received a formal warning last year from EU officials, who accused it of not doing enough to combat dangerous content on its platform.
Broader Implications and Potential Fallout
This enforcement action carries notable diplomatic weight. It risks aggravating former US President Donald Trump's administration, which has repeatedly criticised Brussels' digital rules and warned of potential retaliation if American tech firms are targeted with penalties. The fine underscores the EU's commitment to enforcing the DSA, which aims to curb abusive market conduct before it allows digital behemoths to dominate.
The €120 million fine against X serves as a stark reminder to all major tech platforms about the serious financial and operational consequences of ignoring the European Union's stringent digital governance framework. It signals the start of a more aggressive enforcement era for the Digital Services Act.
