The US backs Elon Musk’s X in appealing a €120 million EU fine, arguing it violates the Digital Services Act and misrepresents verification practices online.

Elon Musk's social‑media platform X is filing an appeal against a €120 million fine imposed by the European Commission. The company argues that the penalty violates the Digital Services Act, which governs online services across the bloc.

The European Commission announced the sanction in a press release on Tuesday, stating that X "deceives users" by selling blue verification ticks without "meaningfully verifying" account identities. The regulator said the practice undermines consumer trust and breaches the Commission’s rules on transparency and user safety.

In its filing, X contends that the fine exceeds the limits set by the Digital Services Act and that the Commission did not follow the procedural safeguards required for such penalties. The appeal will be examined by the General Court of the European Union, which has jurisdiction over cases involving EU competition and digital policy.

Legal analysts note that the outcome could set a precedent for how verification services are regulated under the Digital Services Act. If the court overturns the fine, it may prompt the Commission to revise its enforcement approach toward verification badges and other monetisation features.

The European Commission has not commented on the pending appeal. X has indicated that it will continue to cooperate with EU authorities while pursuing the legal challenge.

The case highlights the tension between platform monetisation strategies and emerging EU regulations aimed at protecting online users. The court is expected to issue a ruling later this year.