EU Fines X $140M for DSA Violations

The European Union has imposed its first fine under the Digital Services Act (DSA), penalizing Elon Musk's X (social network) $140 million (€120 million) for multiple transparency violations. The violations include the deceptive design of its blue checkmark system, which allows anyone to pay for 'verified' status without meaningful identity verification, making users vulnerable to scams. Additionally, X (social network) failed to provide sufficient transparency in its advertising repository and restricted researchers' access to public data, hindering investigations into systemic risks. The European Commission, led by Henna Virkkunen, emphasized that the fine is proportionate and aims to enforce digital legislation, not censorship. This decision has drawn criticism from US officials, including Vice President JD Vance, Secretary of State Marco Rubio, and FCC Chairman Brendan Carr, who view it as an attack on American companies and free speech. Elon Musk himself responded with 'Bullshit' to the European Commission's announcement. The fine highlights a growing division over digital sovereignty between the European Union and the United States, with the Trump administration threatening retaliation against perceived curbs on US companies' profits and freedom of expression. While X (social network) faces potential further penalties if it fails to comply within 60 to 90 days, rival platform ByteDance — TikTok Shop avoided a fine by offering concessions.