European Commission Fines X €120 Million for Fraud and Digital Manipulation

The European Commission has slapped social media platform X, owned by billionaire Elon Musk, with a €120 million fine for violating transparency rules under the Digital Services Act (DSA). The EU said the platform failed to meet requirements around its blue verification badge, ad display practices, and data access for researchers.

The decision marks the first official EU ruling against a major platform for noncompliance with the law, highlighting growing concerns over the spread of misleading and false information on digital networks.

Misleading Verification Badges Raise Fraud Risks

The European Commission says X’s “blue verification badge” misleads users, as anyone can obtain it by simply paying a fee, without serious verification of the account holder’s identity. The Commission warned that this turns a tool meant to signal trust into a commercial service that could encourage fake accounts, facilitate identity theft, and make it easier for bad actors to spread misinformation or manipulate public conversations.

The Commission stressed that the law does not require platforms to verify identities, but it prohibits them from claiming or implying that an account is “trusted” or “verified” without proper verification. European officials say this kind of design manipulation for such a high-profile feature significantly raises the risks of digital deception and undermines efforts to maintain a safe and reliable information environment.

U.S. Criticizes European Commission Fine on X

The European Commission’s decision has drawn sharp criticism from senior U.S. officials. Senator Marco Rubio called the fine “an attack on American companies and the American people by foreign governments,” adding in a post on X that “the days of silencing Americans online are over.”

Elon Musk reposted Rubio’s comment with the word “Absolutely,” signaling his support. Federal Communications Commission Chairman Brendan Carr also slammed the European Commission, accusing it of “punishing a successful platform simply because it is an American company” and claiming that Europe “taxes Americans to offset regulatory burdens that slow its economy.”

The remarks come amid growing tensions between Brussels and Washington over tech regulation, as the EU steps up efforts to tackle online misinformation and influence campaigns.

Ad Transparency Gaps and Restricted Researcher Access to Data

The European Commission’s ruling goes beyond the blue verification badge. The Commission also accused X of lacking transparency in its ad library, saying the platform fails to provide key details such as ad content, subject, and funding sources. Brussels warned that this lack of information makes it harder for researchers and civil society to identify misleading ads, coordinated campaigns, and hybrid information threats.

The Commission added that X obstructs researchers’ access to public data by imposing bureaucratic barriers and restricting data collection even when legally permitted. According to EU officials, this undermines academics’ and experts’ ability to study systemic risks, including tracking networks that spread false or misleading information.

Henna Virkkunen, the Commission’s vice president for technology, said the EU “holds X accountable for undermining user rights and avoiding responsibility,” emphasizing that “misleading users, obscuring ad information, and blocking research data have no place in the European Union.”

EU Issues First Ruling for Noncompliance Under Digital Services Act

Under the ruling, X has 60 days to notify the European Commission of the steps it will take to address violations related to the blue verification badge. The platform also has 90 days to submit a detailed plan addressing three additional issues: the ad repository, ad content transparency, and researcher access to data. Failure to comply could lead to additional recurring fines.

The decision comes as the Commission continues probing other areas, including the spread of illegal content and the fight against misinformation, making X one of the first platforms to face a real-world test of Europe’s new digital regulations.

Musk Reacts to EU Commission Ruling

Elon Musk escalated his response to the European Commission’s fine, calling on X for the EU to be dismantled. He said, “The EU should be abolished and sovereignty returned to individual countries, so that governments can better represent their people.”

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