X Appeals €120M EU Penalty Over DSA Transparency Violations

X has formally appealed a €120 million fine imposed by the European Union Commission in December 2025 for breaches of the Digital Services Act (DSA). The penalty stems from X’s changes to its verification system and restrictions on researcher data access, which the Commission argues violate transparency requirements.

The EU’s decision targets X’s shift to a paid verification model, claiming it creates confusion about blue checkmarks’ meaning – previously a symbol of authenticity, now available to paying users without rigorous checks. Additionally, limiting researcher access to public data was deemed non-compliant with DSA rules aimed at promoting accountability and combating misinformation.

X’s Global Affairs team responded via post, labeling the ruling as based on an “incomplete and superficial investigation, grave procedural errors, a tortured interpretation of the obligations under the DSA, and systematic breaches of rights of defense and basic due process requirements suggesting prosecutorial bias.” The company positions this as a “landmark case,” potentially setting precedents for DSA enforcement, fine calculations, and rights protections.

Owner Elon Musk echoed this sentiment, previously comparing the Commission to a “Nazi regime” and calling for U.S. withdrawal from NATO and EU abolition. His rhetoric drew support from U.S. figures like Vice President J.D. Vance and Secretary of State Marco Rubio. The appeal could influence broader tech regulation, especially as X faces further EU scrutiny. A separate but very much relevant investigation into xAI’s Grok chatbot – focusing on recent issues like generating unauthorized nude images – may lead to additional penalties.