The European Commission has issued a €120 million fine to X, formerly known as Twitter, marking the first penalty under the Digital Services Act (DSA). The fine, announced Friday, stems from concerns over X’s handling of illegal content, transparency regarding advertising, and changes to its verification system. The Commission alleges these practices risk confusing users and potentially facilitating financial scams, raising questions about platform accountability in the digital sphere.
The two-year investigation focused on several key areas, with the most prominent being X’s paid verification service. Previously, blue checkmarks indicated verified identities without charge, but now they are sold for a monthly fee, leading to concerns over the authenticity of accounts. According to the Commission, this change prevents users from reliably distinguishing genuine accounts from bots or impersonators.
European Commission Fines X Over DSA Compliance
The Commission’s decision highlights the growing scrutiny of large online platforms and their adherence to the DSA, a landmark piece of legislation designed to create a safer digital space for users within the European Union. The DSA aims to regulate online services, particularly social media, by imposing obligations related to content moderation, transparency, and user protection.
Specifically, the Commission found X in breach of three key DSA requirements. A €45 million portion of the fine relates to the misleading nature of the paid verification system. Another €40 million addresses X’s failure to provide researchers with access to data on content views and engagement, hindering efforts to understand the platform’s impact. Finally, a €35 million penalty is levied for insufficient transparency in advertising, including a lack of a publicly accessible register of advertisers and explanations for targeted ads.
While substantial, the €120 million fine is below the maximum penalty of up to 6% of X’s global annual revenue, as stipulated by the DSA. Commission officials stated the amount was determined based on the principle of proportionality. This suggests the Commission considered X’s overall size and the severity of the violations when setting the fine.
The announcement follows similar, larger fines levied against other tech giants earlier this year. In April, Apple was fined €500 million and Meta €200 million under EU antitrust laws, demonstrating a broader trend of increased regulatory pressure on major technology companies operating in Europe.
Political Reactions and Ongoing Investigations
The timing of the fine and the preceding criticism have drawn political attention. US Vice President JD Vance preemptively criticized the potential penalty on X itself, accusing the EU of attempting to censor free speech and unfairly targeting American companies. This echoes previous statements from Vance, where he referred to European Commissioners as “political police.”
However, the Commission defended its decision, stating it was based on a thorough legal assessment and aimed at ensuring compliance with the DSA. An EU official explained the two-year investigation was deliberately lengthy to build a robust case, anticipating legal challenges from X.
This fine is not the end of the scrutiny for X. Two further investigations are currently underway. One focuses on the platform’s effectiveness in tackling illegal content and the speed with which it responds to user reports. The other examines X’s algorithm and its potential to spread harmful content, including terrorist propaganda and misinformation during election periods.
Meanwhile, the Commission has welcomed commitments from TikTok to improve its advertising transparency, following a similar investigation into the video-sharing platform. This indicates a proactive approach to enforcing the DSA across various social media services.
The outcome of these ongoing investigations and X’s potential appeal of the fine will be closely watched by the tech industry and regulators alike. This case sets a precedent for DSA enforcement and signals a new era of accountability for online platforms operating within the European Union. Stay informed about the Digital Services Act and its impact on the digital landscape.