EU fines Elon Musk 140 million dollars over X transparency breaches

The EU fines X 140 million dollars for breaching Digital Services Act rules on blue checkmarks and transparency

The European Commission has fined X 140 million dollars after ruling that the platform breached several transparency requirements under the Digital Services Act. The decision cites issues involving the paid blue checkmark system, the platform’s advertising repository, and access to public data for researchers.

Regulators state that the paid blue checkmark misleads users by implying verification without confirming the identity behind an account.

Under the DSA, platforms must not present accounts as verified when no verification process has taken place. The Commission concluded that X’s approach failed to meet this standard.

The ruling also addresses X’s ad repository, which the Commission says does not fulfil the required transparency obligations. Officials report that the repository lacks proper search functions, contains delays that obstruct access, and omits essential information such as ad content, relevant topics, and the entities funding campaigns.

According to the decision, these omissions hinder the ability of researchers and civil groups to track fraudulent activity or coordinated influence efforts.

A further finding states that X has not provided adequate access to public platform data for researchers. The Commission argues that restrictions in the company’s terms, combined with barriers in the access process, prevent eligible researchers from gathering information needed to study online risks.

This ruling is the first non-compliance decision issued under the Digital Services Act. The fine was calculated based on the severity of the breaches, the number of EU users affected, and the duration of the violations.

X now has 60 working days to explain how it will address the misuse of the blue checkmark. The company must then submit an action plan within 90 working days outlining improvements to its ad repository and researcher data access.

The Board of Digital Services will review the plan before the Commission sets an implementation deadline. Further penalties may follow if X does not comply.