Originally introduced to verify the identity of high-profile users such as celebrities and journalists, the verification system was changed following Musk’s 2022 acquisition of what was then known as Twitter, granting blue checkmarks to all users who pay a subscription fee.

The European Commission said presenting paid subscribers as “verified” users is deceptive and exposes users to scams, violating the DSA obligation for online platforms to prohibit deceptive design practices on their services.

It also said X was breaching its DSA obligations in regards to ad transparency and providing researchers with access to public data.

The €120 million fine announced on Friday — “calculated taking into account the nature of these infringements, their gravity in terms of affected EU users, and their duration” — marks the first non-compliance decision under the DSA.

X has 60 working days from the decision to inform the Commission of the specific measures it intends to take to bring to an end the infringement of Article 25 (1) DSA, related to the deceptive use of blue checkmarks.

X has 90 working days to submit to the Commission an action plan setting out the necessary measures to address the infringements of Articles 39 and 40(12) DSA, relating to the advertising repository and to the access to public data for researchers.

The European Board of Digital Services will have one month from receipt of X’s action plan to give its opinion. The Commission will have another month to give its final decision and set a reasonable implementation period.

Henna Virkkunen, the European Commission’s executive vice-president for tech sovereignty, security and democracy, said: “Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU.

“The DSA protects users. The DSA gives researchers the way to uncover potential threats. The DSA restores trust in the online environment.

“With the DSA’s first non-compliance decision, we are holding X responsible for undermining users’ rights and evading accountability.”