Elon Musk’s social media platform X received a 120 million euro ($140 million) fine from the European Union for breaking digital transparency regulations, igniting a transatlantic dispute over tech regulation.
Brussels’ first enforcement action under the Digital Services Act, which was intended to halt social media companies, was on Friday.
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Washington has grown in resentment over the decision, where officials claimed that Europe targeted US businesses under the pretense of defending users.
Following a two-year investigation, European regulators found X guilty of three violations. The platform’s paid blue checkmark system, which Brussels claimed “deceives users” about account authenticity, was fined 45 million euros ($52.4).
For failing to keep up transparent advertising records that would enable legitimate political advertisements, X was fined another 35 million euros ($40.7 million) while preventing researchers from accessing public data cost the business 40 million euros ($46.6 million).
We fined X today for breaking the DSA’s transparency obligations.
For: We’re holding X accountable:
Its “blue checkmark” has a deceptive design.
The transparency of its advertising repository
failure to give researchers access to public data↓
The decision could stifle Brussels and Washington’s trade talks, which the Trump administration has demanded Europe halt because it views protectionist regulations.
Even prior to the announcement, US Vice President JD Vance criticized Brussels, claiming that the platform was being punished “for not engaging in censorship.”
Foreign governments’ attacks on all American tech platforms and the American people, according to Secretary of State Marco Rubio.
Musk wrote, “Absolutely,” in response to Rubio’s post. Musk wrote: “Bulls******” while commenting on the EU’s post announcing the fine.
Henna Virkkunen, the head of EU technology, disputed that the ruling constituted censorship.
She claimed that Brussels was simply “holding X responsible for undermining users’ rights” and that misleading users with blue checkmarks, obscured information on ads, and shutting out researchers had no place online.
After what many perceived as protracted delays in enforcement, European politicians expressed relief.
German Digital Minister Karsten Wildberger claimed it demonstrated that Brussels was “determined to enforce” its rules, while French Digital Minister Anne Le Henanff referred to it as a “magnificent announcement.”
The penalty was criticized as too modest.
The act, which imposes sanctions on up to 6% of global revenue, allows for a fraction of the 5.9 billion euro ($6.9 billion) cap.
According to Politico, the Future of Technology Institute’s executive director Cori Crider reportedly said, “Musk will moan in public … in private, he will be doing cartwheels.”
X now has 60 to 90 days to submit compliance plans for the violations, or it could be subject to additional, recurring fines.
The Reuters news agency contacted the company about commenting, but the company declined.
In addition to Facebook and Instagram, the ruling comes amid broader inquiries into 10 major platforms.
TikTok, a Chinese company, pledged to increase its level of transparency in its advertising, and avoided penalties on Friday.
