Elon Musk’s social media platform X has launched a landmark legal challenge against a €120 million fine imposed by the European Commission under the Digital Services Act (DSA).
This marks the first judicial contest of a penalty handed down since the European Union’s online content rules entered into force.
The company formally filed its appeal at the General Court of the EU in Luxembourg, contesting the December 2025 decision that penalised X for alleged breaches of transparency obligations.
X described the probe as “incomplete and superficial” and accused EU officials of “prosecutorial bias”, arguing the fine violates due process rights.
The EC announced the €120 million penalty on December 5, 2025, the first fine issued under the DSA against what is technically called a “very large online platform”.
An EU spokesman told AFP the EC was aware of the appeal and “is ready to defend its decision in court”.
The alleged breaches centred on three articles: The “deceptive design” of the paid blue checkmark verification system, which the EC said misled users about account authenticity by lacking adequate identity checks (Article 25 of the DSA); insufficient transparency in the advertising repository, failing to provide required details on ad content and targeting (Article 39); and restrictions on researchers’ access to public platform data (Article 40).
The fine was broken down as about €45 million for the verification issues, €35 million for alleged advertising transparency failures and €40 million related to data access for research, according to contemporary reports of the decision.
X, in its appeal statement shared via the platform, emphasised that this represents “the first non-compliance fine under the Digital Services Act” to face court scrutiny.
The company is supported in the challenge by the free-speech advocacy group Alliance Defending Freedom (ADF) International, which framed the DSA in some commentary as an “online censorship law”.
Dr Adina Portaru, Senior Counsel, Europe for ADF International, said in a statement: “X is being targeted by the European Commission because it is a free speech platform. Social media platforms are today’s public square, and the DSA threatens speech in that public square.
“This case turns on whether the enormous powers given to the European Commission under the DSA are compatible with the rule of law.
“Under the DSA, the Commission is able to define the rules for so-called ‘content moderation,’ launch investigations, enforce them, and impose massive penalties for noncompliance, all with no meaningful checks and balances,” Portaru sid.
In a reaction to Brussels Signal, she added: “The Commission insists this fine is not about censorship but about transparency and accountability.
“But transparency rules do not exist in a vacuum. Under the DSA, they are embedded in a system where the same authority defines ‘systemic risks,’ interprets compliance, investigates platforms, and imposes massive fines.
“When regulatory power is this centralised, even so-called technical enforcement actions have direct implications for freedom of expression,” she added.
“The truth is that the DSA is a tool for censorship, both in the EU and around the world. Under the legislation, platforms must censor ‘illegal content’, which includes a plethora of draconian European speech laws, or face massive fines for noncompliance. For example, in Germany, it is illegal to insult a politician online.
“This case is not just about transparency — it is about ensuring that digital regulation respects due process, proportionality, and fundamental rights. The outcome here will effect the entire DSA enforcement architecture,” Portaru concluded.
The case escalates long-running tensions between Musk’s platform and Brussels regulators.
Investigations into X began as far back as December 2023, shortly after the DSA applied to very large platforms with more than 45 million monthly EU users.
X Files Appeal Against €120M EU Fine Under Digital Services Act
X filed an appeal at the General Court of the European Union challenging the €120 million fine imposed by the European Commission on 5 December 2025, the first non-compliance fine under the Digital Services Act…
— Global Government Affairs (@GlobalAffairs) February 20, 2026
