X said it has appealed a €120 million ($140 million) fine imposed by the European Commission for breaches of transparency obligations under the EU’s Digital Services Act, in what could become a first major court test of the bloc’s new online-platform rulebook.
X said on Friday, February 20, 2026, that it is challenging a €120 million ($140 million) penalty imposed by the European Commission on December 5, 2025, over violations of the EU’s Digital Services Act (DSA).
The Commission’s decision cited three transparency-related breaches: the platform’s paid “blue check” system, which regulators said can mislead users into thinking accounts have been meaningfully verified; shortcomings in X’s advertising repository; and restrictions that, in the Commission’s view, prevented qualified researchers from accessing certain public data for independent study.
X said it filed an appeal at the EU’s General Court and argued the enforcement process was flawed. In a statement posted by X’s Global Government Affairs team, the company said the decision followed an “incomplete and superficial investigation,” involved “serious procedural errors,” and reflected what it called a distorted interpretation of the DSA and violations of defense rights and due-process guarantees.
The Commission has described the case as the first non-compliance decision under the DSA. EU officials have framed the action as a transparency enforcement matter rather than a ruling targeting specific viewpoints or political speech.
Critics of the DSA, including some U.S. conservative and free-speech advocacy groups, argue the law can pressure platforms’ moderation choices and permits large penalties. The DSA allows the Commission to fine very large online platforms up to 6% of their worldwide annual turnover for certain infringements.
Alliance Defending Freedom (ADF) International backed X’s appeal. Adina Portaru, a senior European counsel at ADF International, said the case raises concerns about the Commission’s role in setting and enforcing platform rules, calling the action against X a “crackdown” on a “free speech platform” and warning about a broader precedent for speech regulation.
ADF International has previously organized opposition to the DSA, including an October 2025 letter signed by more than 100 advocates urging the Commission to reconsider the law. ADF International and other critics say the Commission’s subsequent response characterized the DSA as “content-agnostic,” a point the group disputes.
Elon Musk, the owner of X, responded angrily after the fine was issued, calling it “bullsh*t” and saying the European Union should be “abolished.”
In the United States, Republican lawmakers have criticized European and other foreign online-safety and content rules. House Judiciary Committee Chair Jim Jordan said in early February 2026 that lawmakers were exploring proposals intended to protect Americans and U.S. firms from penalties tied to foreign speech regulations. Jordan’s committee has also released materials it says show European pressure on platforms to adopt content guidelines on politically sensitive topics.
The General Court appeal is expected to be closely watched by regulators and major technology companies as the EU’s new platform enforcement regime matures.
