X, the platform formerly known as Twitter, just got slapped with a major fine—€120 million worth. This rate is the penalty determined by the European Commission. This penalty marks the first enforcement under the EU’s Digital Services Act, which aims to regulate online platforms more strictly. The Friday announcement was the opening shot in what is expected to be a hotly contested battle between X and European regulators.
The proposed fine stems from X’s recent issues with its blue checkmarks, which act as signals of verified accounts. The European Commission expressed that “this deception exposes users to scams, including impersonation frauds, as well as other forms of manipulation by malicious actors.” As a result of this ruling, X is required to answer the Commission’s concerns about its verification practices within 60 days. If X misses the deadline, it could potentially incur further penalties.
No surprise then that Elon Musk, who loves to rant on X (formerly Twitter), was not shy about expressing his displeasure with the EU’s moves. He suggested that the EU “should be destroyed,” deepening the rift with the government’s coalition partner and increasing tensions. X just recently boosted a right-wing user who compared the EU’s regulatory efforts to fascism. This is indicative of a growing frustration among many users that the platform itself is under siege.
Nikita Bier, a senior X executive, went so far as to accuse the European Union regulator of collusion. He said they are taking advantage of a loophole in X’s ad system. He stated, “It seems you believe that the rules should not apply to your account,” highlighting the platform’s frustration with regulatory scrutiny. This dispute follows a similar incident in Australia last year when X was fined A$610,000 (approximately $386,000) for failing to cooperate with an investigation into its anti-child abuse practices.
This is not the first time X has been on the wrong side of global regulators. In 2024, Brazil’s Supreme Court overturned the ban on the platform. The ruling came after the social media platform’s acceptance of a fine of 28 million reais — about $5.1 million. The platform had earlier blocked accounts that were accused of spreading misinformation in that country.
The hefty fine that European regulators have levied against X has captured the notice of U.S. officials as well. US Secretary of State Marco Rubio and the Federal Communications Commission (FCC) criticized the EU’s actions, asserting that “the days of censoring Americans online are over.”
As this ongoing situation continues to unfold, it’s still unclear what X’s future relationship with European regulators will look like. The platform was designed to be in line with the Digital Services Act. That creates a solid prescient for how it will court regulatory challenges elsewhere.