EU fines $140 million for violating historic digital service rules

The European Union fined Elon Musk’s company Today’s announcement marks the first time a company has been fined under the landmark Digital Services Act (DSA) for curbing “unlawful and harmful activities” on online platforms, and comes after the EU launched a multi-faceted investigation into X in December 2023.

“Tricking users with blue check marks, hiding ad-related information, and driving away searchers has no place on the EU internet,” EU Chief Technology Officer Hina Virkkonen said in a statement. “DSA protects users. DSA gives researchers a way to uncover potential threats. DSA restores trust in the online environment. With the first non-compliance decision with DSA, we hold X accountable for undermining users’ rights and evading accountability.”

In July 2024, the EU preliminarily ruled that X’s blue check mark system is specifically designed to scam users by allowing anyone to pay for “verification”, making it difficult to determine the authenticity of X accounts.

The European Union can fine companies up to 6 percent of their global revenue for DSA violations. Since X is a private company – it was bought by Musk for $44 billion in October 2022 And again by his artificial intelligence company, X AI, in March 2025 for $33 billion – It is unclear what the maximum possible penalty is. X can appeal the fine, or can still reach a settlement with the EU by implementing changes that meet DSA compliance concerns.

A 2023 investigation was also launched to scrutinize X’s moderation practices and the posting of illegal or harmful content on the platform, which is currently ongoing and could result in further sanctions.