Elon Musk’s attempt to turn blue checks into a revenue stream for X has hit a major hurdle.

The European Commission, the EU’s executive branch responsible for enforcing the bloc’s laws, just hit X with a fine of 120 million euros (about $140 million) for breaking transparency obligations under its Digital Services Act.

Specifically, the Commission has taken issue with the platform’s “deceptive design” of its blue checkmark verification badges, as well as a lack of transparency around its advertisers.

“Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU,” said Henna Virkkunen, the executive vice president for tech sovereignty, security and democracy at the Commission, in a statement .

This is the latest setback

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