Key Takeaways
- X has appealed a $140 million penalty from the European Commission under the Digital Services Act for non-compliance with EU regulations.
- The investigation highlighted issues with X’s verification system, advertising repository, and access to data for independent researchers.
- X claims the Commission’s decision contains legal errors and seeks annulment or reduction of the fine in EU court.
- The case will clarify enforcement aspects of the Digital Services Act as it proceeds through the EU judicial system.
X has appealed a $140 million penalty issued by the European Commission under the Digital Services Act (DSA). The fine was announced in December 2025 after an investigation into the platform’s compliance with EU digital regulations. X is classified as a Very Large Online Platform under the DSA.
The Commission concluded that the company failed to meet certain transparency and data access obligations required by the law.
Findings Behind the EU Commission Penalty
One part of the investigation focused on X’s verification system. The platform replaced its legacy identity-based verification with a paid subscription model for blue checkmarks. Regulators stated that this approach did not meet DSA transparency requirements.
The Commission also reviewed X’s advertising repository. Authorities found that the ad database did not provide sufficient public information as required under the regulation. The assessment cited gaps in accessibility and disclosure standards.
Another issue involved access to platform data for vetted independent researchers. The Commission determined that X did not fully comply with obligations that allow qualified researchers to study systemic risks and platform operations.
Legal Challenge and Next Steps
X filed its appeal in early 2026. The company stated that the Commission’s decision contains procedural and legal interpretation errors. It is seeking annulment or reduction of the fine through EU court proceedings.
The case will now proceed within the European Union’s judicial system. The outcome may clarify aspects of enforcement under the Digital Services Act.
The European Commission continues oversight of major online platforms to ensure compliance with DSA requirements.