TikTok Avoids Penalty Through Compliance Commitments as EU Fines X €120 Million for DSA Violations. EU Crackdown on Big Tech Intensifies Under Digital Services Act

The European Union has begun enforcing digital rules at their most severe level because X (formerly Twitter) received a €120 million penalty for violating the Digital Services Act (DSA) which represents a major development in EU tech platform supervision. The first major Digital Services Act enforcement case has been announced by Reuters, which establishes a significant benchmark for digital service providers.

X Penalized for Misleading Design, Opaque Ads, and Researcher Restrictions

EU regulators found that X committed systemic transparency and design violations, including:

• Misleading Blue-Check Verification

X’s paid verification badge was deemed deceptive because it implied identity authentication while offering no genuine verification, increasing risks of impersonation, scams, and misinformation.

• Lack of Advertising Transparency

The platform’s ad repository failed to meet legal requirements for tracking political ads, targeted promotions, and the identity of advertisers, a core DSA obligation.

• Blocking Researcher Access

By restricting access to public-interest data, X hindered external research on misinformation trends, algorithmic risks, and harmful content patterns.

As Reuters reports, these violations were considered grave, prolonged, and broad in impact, justifying a significant financial penalty.

TikTok Avoids a Fine by Offering Full Transparency Commitments.

While X faces heavy consequences, TikTok avoided immediate penalties by taking a proactive, cooperative approach with EU regulators.

TikTok’s Compliance Commitments Include:

• A complete upgrade of its advertising transparency library
• Publication of full ad content and targeting parameters
• Faster updates to ad listings
• Expanded data access for researchers
• Greater accountability across ad disclosure systems

These commitments allowed TikTok to “settle” without a fine, as Reuters reports, though the platform remains under active, ongoing investigation.

EU’s Message: Cooperation Matters

EU regulators highlighted that platforms demonstrating willingness to fix structural issues may avoid fines, while those resisting compliance, like X, will face strong enforcement.

EU Authorities: Enforcement Is About Safety, Not Censorship

EU DSA leadership emphasized that fines are not intended to suppress speech but to enforce transparency, user protection, and responsible system design.

Regulators clarified:
“If you comply with our rules, you don’t get the fine. Non-compliance is what triggers enforcement.”

This signals a shift toward a compliance-by-design regulatory model for all major digital platforms operating in the EU.

What Comes Next: Big Tech Faces 12–24 Months of Intensified Scrutiny

The X fine and TikTok’s commitments demonstrate the EU’s new strategy: reward cooperation, penalize resistance, and enforce transparency at scale.

Platforms likely facing the next wave of scrutiny:

• Meta (Facebook & Instagram): political ads, teen safety, recommendation algorithms
• YouTube: harmful content, advertiser transparency, youth protections
• Snapchat: ad library compliance and safety-by-design obligations
• Amazon & AliExpress: illegal product listings and traceability rules

Likely Regulatory Themes Ahead

A. Mandatory Algorithmic Access for Researchers

• Mandatory researcher access to platform data

Platforms will be pressed to provide direct data pipes, not curated datasets, for studying systemic risk.

B. Tougher Action on Political Ads

• Stricter political-ad targeting rules

Expect more tighter scrutiny on:

• microtargeting
• undeclared political influence operations
• campaign-period ad controls

C. “Design-by-Default” Regulation

• Increased algorithmic transparency requirements

The EU will demand that safety features and transparency systems be built into platforms, not optional or add-on tools.

D. Higher Fines if Companies Resist

• Fines up to 6% of global revenue for non-compliance

X’s penalty signals a trend: non-cooperative platforms may face escalated financial risks of up to 6% of global annual revenue, an existential threat for ad-based platforms.

Conclusion: X’s Fine and TikTok’s Settlement Mark a Turning Point in Global Tech Governance

As Reuters reports, the EU has made it clear to digital companies that they must follow the DSA regulations, and compliance with DSA is no longer optional. because it is mandatory.

Big Tech companies need to pay €120 million in fines when they choose to ignore regulatory standards. TikTok achieved better results through its decision to work actively with regulators.

The Big Techies will experience a fundamental transformation in their European operations during the upcoming two years. Organizations must now follow enforcement-based governance rules because the time of voluntary disclosure has come to an end.

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