The European Commission has officially fined the social network X (formerly Twitter), owned by Elon Musk, €120 million. The reason is the violation of the requirements of the Digital Services Act (DSA), aimed at ensuring increased transparency and accountability of large online platforms.
The regulator believes that X has violated several key provisions — from misleading paid verification practices to insufficient transparency of data and advertising.
Why X received the fine: details of the investigation
Paid verification as a 'blue checkmark'
One of the main complaints was the misleading scheme of paid verification. The 'blue checkmark' indicated verification, but in reality served only as a commercial option. This could create a false impression for users that the account was indeed verified based on the authenticity of identity.
Limited access to data and opaque advertising
According to the regulator's assessment, X did not provide researchers and external analysts with sufficient access to the platform's user data. In addition, there was a lack of proper transparency regarding advertising materials—advertising on the platform could have been insufficiently marked, violating the transparency norms established by DSA for online platforms.
Violation of DSA regulations
All of the above points—paid verification, opaque advertising, and limited access to data—fall under the DSA regulations aimed at increasing responsibility, transparency, and user protection on the largest online platforms.
The amount of the fine, the EU's response, and the importance of the precedent
The fine of €120 million is calculated as proportional, without reference to the company's income. Representatives of the European regulator emphasize that the goal of punishment is not censorship, but ensuring transparency.
According to the head of the EU digital agency, the investigation was solely about compliance with DSA regulations, and this case will be an important precedent for other major social networks and online platforms.
What is expected from X: action plan and deadlines
X is required to submit a plan to correct identified violations within 60 days and to implement necessary measures within 90 days. Otherwise, additional fines may be possible.
The company xAI related to X also falls under the DSA regulations—this means that the EU's requirements may extend to its activities.
Expansion of investigations: what else is under control
The EU continues to check X in other areas:
the presence and removal of illegal content;
the dissemination and control of political disinformation;
the correctness of the Community Notes function.
If violations are confirmed, new sanctions may be possible. It should be noted that previously, under various digital regulations, the EU has already fined companies such as Apple, Google, and Meta.
Elon Musk's response and possible legal consequences
Elon Musk stated that he intends to appeal the European Commission's decision in court, considering it unfounded—this may delay the payment of the fine and the launch of corrective measures by X.
Depending on the outcome of the legal proceedings, the process of correcting violations and making changes to the platform may be prolonged.
What is important for users and the crypto community$BTC
For users of X and crypto investors, this precedent is a signal of transparency and accountability. In the context of increasing regulation of digital platforms (which is already reflected in the operations of exchanges such as Binance $BNB ), the importance of compliance with the norms becomes critical.
For platforms working with cryptocurrencies $ETH and digital assets, especially in the EU, case X is a reminder of the need to comply with the requirements of legislation regarding transparency, fair verification, and data protection.
