Elon Musk’s social media venture, X, has been slapped with a €120 million (£105m) fine after the European Commission found the platform in violation of multiple transparency rules under the Digital Services Act (DSA). The ruling has quickly escalated into a transatlantic spat, drawing reactions from senior U.S. officials.
The decision wraps up a two-year investigation and marks the European Union’s first formal non-compliance ruling against X since the new regulations for major tech platforms came into force in 2023.
The European Commission imposed the €120 million fine on X for three major violations:
€45 million relates to its paid blue tick verification system, which EU officials called “deceptive” and confusing for users.
€35 million stems from a lack of transparency in platform advertising
€40 million was levied for failing to provide researchers access to public data.
The Commission noted that X did not maintain the mandatory advertiser list, crucial for preventing scams, fake ads, and coordinated political campaigns, and also restricted access to data on politically sensitive content.
Although this decision has been made, the broader investigation is ongoing. The Commission is still assessing: Whether X has facilitated the spread of illegal content, whether its algorithms encourage harmful or deceptive content, whether X adheres to laws prohibiting incitement to violence or terrorism, and whether user reports of illegal content are managed appropriately.
According to the DSA, X might face penalties reaching up to 6% of its global earnings, estimated to be between $2.5 and $2.7 billion in 2024. Musk has a 90-day period to submit a strategy and has the option to challenge the decision at the European Court of Justice, similar to actions taken by other large tech companies previously.
The EU’s €120 million fine on Elon Musk’s social media platform X has sparked strong reactions from US political leaders. Vice President JD Vance criticized the ruling even before it was official, claiming the EU was punishing X for “not engaging in censorship.” Secretary of State Marco Rubio called it an attack on all American tech platforms and citizens.
The fine comes amid rising US-EU trade tensions, with Washington warning that EU tech rules could impact steel tariffs, a claim EU Commissioner Teresa Ribera denounced as “blackmail.” EU officials insist the decision reflects their sovereign right to regulate platforms in Europe, highlighting growing friction between American tech interests and European regulations.