EU fines X €120 million over misleading paid verification

The European Union has fined X €120 million under the Digital Services Act (DSA) — marking the first penalty issued under the new regulation.

Regulators concluded that the platform deployed deceptive interface practices, the most prominent being its paid blue check system. The feature allows any user to purchase “verification,” while visually resembling an identity-confirmation badge.

The investigation found that X violated advertising transparency rules, restricted researchers’ access to data, and effectively disguised paid checkmarks as a trust signal. The European Commission emphasized that the law does not require platforms to verify user identities, but it does prohibit creating the false impression that verification has taken place when it has not.

Regulators also stated that X limited access to tools used by researchers to study platform content. EU Commissioner Henna Virkkunen said such manipulation undermines trust in the digital environment and prevents independent experts from identifying risks, adding that the decision should serve as a warning to the entire industry.

X may appeal the fine, but must submit corrective measures addressing the checkmark system within 60 days, and solutions for the other violations within 90 days. Failure to meet these deadlines will lead to additional sanctions.