X Challenges EU Fine Under Digital Services Act
Social media platform X, formerly Twitter, has formally challenged a €120 million (approximately $140 million) fine imposed by the European Union (EU), marking the first legal challenge against a penalty issued under the Digital Services Act (DSA).1 The case centers on concerns about the concentration of power within the European Commission and the lack of adequate checks and balances.
The Dispute: Transparency and Researcher Access
The European Commission fined X in December 2025, citing failures to comply with transparency obligations and procedural requirements under the DSA.1, 2 Specifically, the Commission found that X created barriers to access for researchers seeking data to study systemic risks on the platform.4 These barriers included:
- Requiring researchers to subscribe to a “pro” Application Programming Interface (API) tier costing $5,000 per month, rather than providing free access.4
- Rejecting researchers who were not residents of the EU, despite no legal requirement for residency.4
- Prohibiting researchers from using automated tools to collect publicly available data.4
The Commission has clarified that publicly accessible data must be provided free of charge to qualified researchers, provided they adhere to data security rules.4 the Commission disputes X’s definition of “systemic risk,” asserting that studying global trends, such as election interference, is relevant to understanding risks within the EU.4
X’s Claims and Concerns Over DSA Power
X and its owner, Elon Musk, argue that the European Commission is biased towards prosecution and ignored basic due process in its investigation.1 The lawsuit alleges that the DSA grants the Commission excessive power, lacking “real checks and balances.”1 X is required to submit a modern plan by mid-April 2026, detailing how it will remove barriers affecting researchers.4
Broader Implications for Tech Giants
This case has significant implications for other “very large online platforms” (VLOPs) governed by the DSA, including Meta, TikTok, and Google.1 The DSA empowers the European Commission to establish rules, investigate violations, and impose penalties on these platforms.1
US Concerns and Potential Retaliation
The U.S. House of Representatives Judiciary Committee recently issued a 160-page report alleging that the DSA is being used to pressure U.S. Companies to align global content censorship rules with European standards.1 Concerns have been raised by U.S. Officials, including Secretary of State Marco Rubio, who characterized the fine as an “attack on all American tech platforms.”2, 3
Further Investigations and Potential Penalties
In addition to the current dispute, X faces a separate investigation that could result in additional fines of up to 6% of its worldwide annual turnover.1
Key Takeaways
- X is legally challenging a €120 million fine from the EU under the Digital Services Act.
- The dispute centers on X’s transparency obligations and access to data for researchers.
- X argues the EU Commission has excessive power and lacks sufficient oversight.
- The case sets a precedent for other large online platforms regulated by the DSA.
- U.S. Officials have expressed concerns about the DSA’s impact on American tech companies.
1 BBC News
2 CNBC
4 PBS
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