Commission fines X €120 million for breaching transparency rules under the Digital Services Act

The European Commission has fined X €120 million for breaching transparency requirements set out in the Digital Services Act (DSA). The decision focuses on three areas of non-compliance: the deceptive design of the platform’s verification feature, shortcomings in its advertising transparency tools, and the failure to provide researchers with access to public data.

The Commission found that X’s ‘blue checkmark’ system misleads users by presenting accounts as verified even when no meaningful verification has taken place. Under the DSA, online platforms must avoid deceptive design practices. The Commission concluded that allowing users to pay for a “verified” badge without confirming identity makes it harder for the public to assess authenticity and increases exposure to impersonation and fraud.

X was also found to be non-compliant with advertising transparency obligations. The investigation revealed that the platform’s ads repository is lacking the required information, including the content of advertisements and the identities of paying entities. Additionally, delays and access barriers were seen as undermining the repository’s purpose, limiting scrutiny by researchers and civil society.

The Commission further ruled that X had failed to ensure access to public data for eligible researchers. Restrictions in the platform’s terms of service and procedural obstacles were assessed as preventing meaningful research into systemic risks, including disinformation, coordinated manipulation and harmful content.

This is the first non-compliance decision issued under the DSA. X now has 60 working days to explain how it will address issues linked to deceptive design and 90 working days to provide an action plan to improve advertising transparency and researcher data access. The Board of Digital Services will review the plan before the Commission issues a final decision on implementation timelines.

Failure to comply may lead to additional penalties. The Commission noted that broader investigations into X’s handling of illegal content and information manipulation remain ongoing.