EU Fines X €120m Over Blue Checkmark System
Elon Musk’s social media platform, X, has formally proposed changes to its controversial blue checkmark verification system in a bid to resolve a high-stakes dispute with European Union regulators, following a record €120 million ($138 million) fine imposed in December. The European Commission confirmed on Friday that it had received remedies from the company addressing concerns over the “deceptive design” of the paid verification feature, marking a significant turn in an ongoing transatlantic regulatory clash.
Thomas Regnier, the EU spokesman for digital affairs, told reporters in Brussels that X had submitted proposals specifically relating to its blue checkmark. “The commission will now carefully assess the proposed remedies,” Regnier said, while declining to provide specific details on the nature of X’s concessions. He noted that the platform had avoided the risk of additional periodic financial penalties by engaging constructively with regulators. “We have to value the fact that after a constructive exchange with the company, the company has taken its obligation seriously and has submitted us remedies,” Regnier added .
The fine, issued in December 2025, was the first ever penalty under the bloc’s landmark Digital Services Act, a comprehensive legislative framework designed to force large online platforms to take greater responsibility for illegal and harmful content, transparency, and user safety. The Commission’s investigation, which began in December 2023, concluded that X’s verification system, which allows any user to purchase a blue checkmark through a subscription, constituted a deceptive practice that could mislead users .
Under the previous ownership of Twitter, blue checkmarks were free and served a distinct public interest function: they verified the identity of accounts belonging to journalists, celebrities, government officials, and other public figures, helping users distinguish authentic sources from impersonators or unverified accounts. Following Musk’s $44 billion acquisition of the platform in 2022, that system was dismantled. The checkmark became a commodity available to any user willing to pay for the X Premium subscription, effectively blurring the line between verified public figures and paid subscribers .
European regulators argued that this shift created a material risk of increased user exposure to scams and impersonation fraud, as malicious actors could purchase checkmarks to lend false credibility to deceptive accounts . The Commission’s formal charges, issued in July 2024, held that the blue checkmark no longer corresponded to industry practices and that its design was inherently misleading to consumers .
The December 2025 non-compliance decision detailed three specific violations of the DSA. Beyond the deceptive verification design, regulators found that X’s advertising repository lacked sufficient transparency and accessibility, preventing researchers and civil society organisations from effectively examining potential threats linked to paid political content. The Commission also determined that X imposed undue hurdles on independent researchers seeking access to public data, undermining the DSA’s objective of facilitating academic scrutiny of systemic risks on very large online platforms operating in the EU .
X moved swiftly to contest the penalty. In February 2026, the company filed an appeal with the EU’s top court, the EU Court of Justice in Luxembourg, arguing that the Commission’s decision was based on what it termed an “incomplete and superficial” investigation. X claimed the process contained “serious procedural errors” and that regulators offered a “strained interpretation” of DSA obligations, systematically violating the company’s rights to defence . Despite the legal challenge, the company remains obligated to comply with the financial penalty. Regnier confirmed Friday that the Commission expects X to pay the fine by Monday, March 16, or provide a financial guarantee in lieu of payment .
The case has injected tension into transatlantic relations. Representatives of the Trump administration in the United States have previously accused the European Union of targeting American technology companies and engaging in censorship under the guise of content regulation. EU officials have consistently rejected these claims, maintaining that the DSA applies equally to all platforms operating within the single market and is designed to defend European digital and democratic standards, which have increasingly become a benchmark for global internet governance .
Friday’s announcement does not close the broader regulatory file on X. The Commission’s investigation, initiated in December 2023, remains active as regulators continue to study how the platform tackles the spread of illegal content and information manipulation. Regnier indicated that X must provide further remedies addressing other breaches identified in the December ruling by April 28, including the transparency of its advertising archive and compliance with researcher data access requirements .
Additionally, a separate DSA probe was launched in January 2026 concerning X’s artificial intelligence chatbot, Grok. That investigation, prompted by a global outcry, is examining the generation of sexualised deepfake images of women and minors, raising further questions about the platform’s content moderation and AI safety protocols . X has not publicly commented on the proposed verification changes or the ongoing investigations beyond the statements made through EU officials.