Elon Musk’s X, Formerly Twitter, Fined €120 Million for Breaching EU Online Content Rules
Elon Musk’s social media company X, formerly known as Twitter, is once again under global scrutiny after being hit with lawsuits and regulatory penalties in both the United States and Europe.
Damian Owusu 
Elon Musk’s social media company X, formerly known as Twitter, is once again under global scrutiny after being hit with lawsuits and regulatory penalties in both the United States and Europe. The developments highlight the growing challenges Musk faces in balancing free speech, monetization, and compliance with international laws.
EU Digital Services Act Fine
In December 2025, the European Commission fined X nearly $140 million (€120 million), making it the first major platform penalized under the Digital Services Act (DSA). Regulators cited two key violations:
Blue Checkmark Monetization: Musk’s decision to sell verification badges was deemed misleading, allowing impersonation of public figures and brands.
Advertising Transparency: X failed to clearly distinguish between paid promotions and organic content, raising concerns about scams and user manipulation.
The Commission stressed that these practices undermined user trust and violated the DSA’s strict requirements for transparency and accountability.
Earlier in October 2025, X settled a $128 million lawsuit filed by former Twitter executives, including ex-CEO Parag Agrawal, CFO Ned Segal, and CLO Vijaya Gadde. The executives claimed they were denied severance packages following Musk’s takeover in 2022. While the settlement terms remain undisclosed, the case underscored lingering tensions from Musk’s controversial acquisition.
These legal battles carry significant consequences for X’s future:
Financial Strain: The EU fine and lawsuit settlements add to the company’s mounting costs.
Regulatory Precedent: The DSA fine sets a benchmark for how Europe will enforce digital platform accountability.
User Trust: Monetization strategies, particularly around verification, risk eroding confidence among users and advertisers.
Elon Musk has positioned X as a platform for “free speech” and innovation, but the recent penalties highlight the difficulty of reconciling that vision with global regulatory frameworks. Analysts warn that continued clashes with regulators could limit X’s growth and force changes to its business model.
The lawsuits and EU fine against X mark a pivotal moment in the platform’s evolution. As Musk pushes forward with ambitious monetization strategies, the company must navigate a complex landscape of legal, financial, and reputational risks. For users and investors alike, the coming months will reveal whether X can balance innovation with compliance — or face further setbacks on the global stage.
