The European Union has slapped Elon Musk‘s X with a €120 million fine, the first major penalty under its Digital Services Act (DSA).
The decision has ignited a fresh clash between Brussels and Washington, with U.S. officials condemning the move even before it was officially announced.
The European Commission says X broke transparency rules, particularly through the “deceptive design” of its blue checkmark system.
Officials argue that letting anyone buy verification misleads users and opens the door to impersonation, scams, and manipulation.
X also failed to properly disclose information about political and commercial ads and blocked researchers from accessing necessary data.
EU tech chief Henna Virkkunen pushed back against accusations of censorship: “This decision is about the transparency of X and has nothing to do with censorship.”
Her statement came after U.S. Vice President JD Vance slammed Europe for “attacking American companies over garbage.” Musk responded warmly, saying “Much appreciated.”
The investigation started in December 2023. Last year, regulators determined that Musk’s verification overhaul removed meaningful identity checks, making it easier for bad actors to pose as legitimate accounts.
Brussels also confirmed that other parts of the probe, including concerns about illegal content and information manipulation, are still active.
Many thought the case might stall after Donald Trump returned to the White House and Musk regained political clout. But the EU pushed ahead anyway.
Virkkunen defended the €120 million penalty as fair: “We are not here to impose the highest fines. We are here to make sure that our digital legislation is enforced.”
The DSA allows fines up to 6% of a company’s global revenue. The EU could have based the fine on Musk’s entire empire, including Tesla, but chose what many see as a restrained approach.
The Center for Countering Digital Hate praised the ruling, saying it shows no tech giant is above the law.
France’s digital affairs minister, Anne Le Henanff, called it “historic” proof that Europe is ready to move “from words to action.”
The White House isn’t happy. U.S. Commerce Secretary Howard Lutnick recently warned that Europe needs to rethink its digital rules if it wants progress on steel tariffs.
The Trump administration’s latest national security plan accused Europe of “regulatory suffocation.”
Meanwhile, the EU said it accepted TikTok’s promises to improve ad transparency, though the platform still faces other investigations under the DSA.
EU officials insist U.S. pressure didn’t influence their decision on X, saying they focused on building a legally sound case.
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