The European Commission has imposed a significant fine of 120 million euros on social media platform X for non-compliance with the Digital Services Act (DSA). This is the first instance of a fine being levied under this legislation, which aims to enhance the safety and reliability of online services.

The Commission's findings indicate that X misled users with its 'blue checkmarks', failed to provide a transparent ads repository, and did not grant researchers adequate access to public data. These violations are critical as they hinder efforts to combat scams and misinformation, particularly during election periods.

The DSA outlines specific obligations for online service providers, and the Netherlands Authority for Consumers and Markets (ACM) oversees compliance for digital services in the Netherlands. Reports of violations can be submitted by users, which ACM forwards to relevant authorities, including the European Commission.

Despite a preliminary report issued by the Commission last year, X has not taken sufficient corrective measures, prompting the current fine. The misleading nature of the blue checkmarks allows anyone to claim authenticity without verification, complicating users' ability to discern genuine accounts.

Additionally, X's ads repository lacks essential transparency, failing to provide searchable information about advertisements, including their content and funding sources. The platform is required to respond within 60 working days regarding the blue checkmark issue and 90 days for the other violations, or face further penalties.

In contrast, TikTok has proactively addressed similar concerns by making commitments to improve its ads repository and transparency, thus avoiding a fine.