(MENAFN- Live Mint) European Union regulators have fined Elon Musk-owned social media platform X (formerly Twitter) 120 million euros (USD 140 million) for failing to comply with the bloc's digital regulations.

The European Commission announced its decision after conducting a comprehensive two-year investigation launched under the 27-nation bloc's Digital Services Act, during which regulators assessed X's adherence to the bloc's rules on illegal content, systemic risks and platform accountability.

What is the Digital Services Act?

The Digital Services Act, which is also known as the DSA, is a sweeping rulebook designed to hold online platforms more accountable for the safety and integrity of their digital spaces.

It requires companies to take proactive measures to protect European users, clean up harmful or illegal content and products on their sites. It also requires the sites to ensure transparency in how their algorithms work.

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The law gives regulators stronger enforcement powers, including the ability to impose hefty penalties on platforms that fail to meet these obligations, making non-compliance a costly risk for companies operating in the region.

What rules did X break?

The Commission noted that it was punishing X, previously known as Twitter, because of three different violations of the law's transparency requirements, AP reported.

However, the decision carries diplomatic risk, as it could rile President Donald Trump, whose administration has repeatedly criticised the digital regulations from Brussels and warned of retaliation if American tech companies are targeted with penalties.

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According to the regulators, the platform's blue checkmarks broke the law because of their“deceptive design” that could potentially expose X users to various scams and manipulation.

X also fell short of the requirements for its ad database and giving access to researchers access to public data, AP reported.

X was previously served with a formal warning last year, as European Union regulators claimed that it has failed to combat dangerous content.

Why was DSA enforced?

The DSA became legally enforceable in August 2023, hitting big tech firms with a comprehensive list of dos and don'ts based on decades of antitrust enforcement in the digital economy.

It was enforced with an aim to stop abusive conduct before it takes hold and allows the digital giants to dominate markets, according to Bloomberg.

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