The European Union has slapped Elon Musk’s social media platform X with a €120 million ($140 million) fine for violating digital transparency rules, marking the first-ever penalty under the bloc’s Digital Services Act (DSA).
The move risks sparking renewed tensions with the US, where President Donald Trump’s administration has already voiced opposition to what it sees as overreach against American tech firms.
The EU’s investigation found that X breached transparency obligations, notably through the “deceptive design” of its blue checkmark for verified accounts.
Since Musk acquired the platform in 2022, the checkmark system allowed anyone to pay for verification without meaningful identity checks, exposing users to impersonation scams, fraud, and other manipulations.
“This decision is about transparency, not censorship,” said Henna Virkkunen, the EU’s tech chief, countering preemptive criticism from US Vice President JD Vance, who warned the EU on X Thursday to avoid “attacking American companies over garbage.” Musk acknowledged the warning with a brief “Much appreciated” on the platform.
The DSA investigation, launched in December 2023 and preliminarily concluded in July 2024, also found that X failed to provide adequate transparency on advertising and did not grant researchers sufficient access to public data. Parts of the probe related to illegal content and information manipulation are still ongoing.
EU Stands Firm Amid US Pressure
The EU could have levied a far larger fine under the DSA — up to six percent of a company’s global revenue, potentially encompassing Musk’s entire business empire, including Tesla. Officials settled on what Virkkunen described as a “proportionate” sum relative to the violations, stressing that enforcement is not about imposing the highest penalties, but ensuring compliance with European law.
“Europe is capable of moving from words to action,” said France’s digital affairs minister Anne Le Henanff, calling the sanction historic.
The Center for Countering Digital Hate also welcomed the fine, saying it “sends a message that no tech platform is above the law.”
Meanwhile, TikTok has committed to addressing EU concerns over its advertising system, although the platform remains under ongoing DSA investigation.
EU officials insist the decision on X was driven purely by legal and regulatory considerations, not US politics, despite Washington’s repeated criticism of the bloc’s tech rules and Trump’s administration advocating for Europe to “abandon its failed focus on regulatory suffocation.”
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