X's EU Compliance Plan
European Commission Approves X Transparency Plan, Demanding External Audits Under DSA Rules
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Key Points
1
The board of digital services coordinators argued that X's fixes were inadequate, meaning the EU could still impose daily penalties up to 5% of the platform's daily global turnover if non-compliance persists.
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The fixes include clarifying the blue checkmark policy by labeling it as a 'premium' (paid) account designation rather than a verified status.
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Musk publicly reacted to the EU penalty, posting remarks such as 'Bullshit' and defending freedom of speech on social media in response to the Commission's decision.
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The approved plan mandates an external, independent audit, with the audit results due within six months after implementing the measures.
The European Commission has accepted Elon Musk's X action plan to comply with the EU's Digital Services Act (DSA), allowing the platform to avoid daily fines — for now, according to Euractiv. The move follows a €120 million fine handed to X last year for breaching EU digital transparency rules.
X now has six months to put the agreed changes in place. An independent external audit will then review whether the platform has followed through, according to Yahoo News.
What X Must Do to Stay Compliant
The action plan covers three main areas: improving X's ad repository, giving researchers better access to data, and increasing overall platform transparency, Northland News Radio reported. These fixes are designed to let researchers, civil society groups, and the public track how X operates and how it affects European users.
One specific change targets X's blue checkmark. The platform must clearly label it as a 'premium' paid account feature — not a verified status. That distinction matters because users previously confused the badge with official identity verification, 927 The Van reported.
Daily Fines Still on the Table if X Falls Short
Acceptance of the plan does not mean X is off the hook. The board of digital services coordinators — regulators from EU member states — argued that X's earlier fixes were not good enough, according to Euractiv. If X fails to meet the new commitments, the EU can impose daily fines of up to 5% of the platform's global daily revenue.
The Commission stressed that ongoing compliance and monitoring across member states remains a priority, Brandiconimage reported. The independent audit results must be submitted within six months of the measures being put in place.
Musk Pushes Back Publicly Against EU Scrutiny
Elon Musk did not stay quiet after the €120 million fine. He posted a one-word response on the platform — 'Bullshit' — and defended what he called freedom of speech, according to Yahoo News. His reaction drew wide attention and signaled continued tension between X's leadership and European regulators.
Despite the public clash, X submitted the action plan and the Commission accepted it. The EU framed the move as a step forward in holding large digital platforms accountable under DSA rules, Euractiv reported.
Why the DSA Makes This a Bigger Deal Than a Single Fine
The Digital Services Act is the EU's main law for regulating big online platforms. It requires companies like X to be transparent about how their systems work and how ads are targeted. The €120 million fine was one of the first major penalties issued under the law, setting a precedent for how Europe handles platform non-compliance, according to Brandiconimage.
Analysts see the case as a test of whether the DSA has real teeth. With an audit due in six months and daily fines still possible, the Commission is signaling that it expects full results — not just promises, 927 The Van reported.
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