X Appeals €120 Million DSA Fine

Elon Musk’s X has appealed the €120 million fine imposed by the European Commission under the Digital Services Act, bringing the first DSA non‑compliance penalty before the General Court of the European Union. The decision, adopted in December 2025, marks a critical moment for EU digital regulation, as the court will be asked to clarify how the DSA’s transparency obligations apply to very large online platforms and how enforcement powers should be exercised.

The Commission’s decision focuses on three areas of alleged non‑compliance. First, regulators concluded that X’s paid verification system risks misleading users by allowing the purchase of a blue checkmark without robust safeguards against impersonation. While the DSA does not require identity verification, the Commission considers design choices that create confusion about authenticity to be incompatible with the Act’s transparency and user protection objectives.

Second, the fine addresses shortcomings in X’s advertising transparency tools. According to the Commission, the platform failed to provide a sufficiently accessible and detailed advertising repository, limiting visibility into advertisers, funding sources, and campaign topics. This finding signals a broader enforcement trend under the DSA, extending scrutiny beyond content moderation to the operational systems that enable public and regulatory oversight.

Finally, the case raises important questions about access to platform data for independent researchers. The Commission found that X placed unjustified restrictions on access to public data, hindering research into systemic risks such as misinformation. In its appeal, X argues that the investigation was procedurally flawed and that the Commission misinterpreted the DSA. The court’s ruling is likely to shape future enforcement practice, penalty calculations, and the balance between regulatory oversight and platform autonomy across the EU.