The European Union on Friday slapped a 120 million euro ($140 million) fine on X, Elon Musk’s social media platform, for violating the bloc’s digital governance rules — a move likely to heighten tensions with Washington over issues of online speech.
The penalty follows a two-year investigation under the EU’s Digital Services Act (DSA), which requires major platforms to better protect users, curb illegal or harmful content, and increase transparency or face heavy sanctions. This is the first formal non-compliance ruling issued under the DSA.
EU officials said X committed three violations involving transparency, prompting the fine. The decision risks angering U.S. President Donald Trump, whose administration has criticized European digital rules as unfairly aimed at American tech firms.
U.S. Secretary of State Marco Rubio condemned the penalty on X, calling it an attack on American companies and citizens. Musk echoed Rubio’s message. Vice President JD Vance also accused the EU of trying to punish X for refusing to “censor” content.
EU officials rejected those claims. Commission spokesperson Thomas Regnier insisted the enforcement action is based solely on legal standards, not political motives or the nationality of companies.
X did not immediately respond to requests for comment.
Regulators first laid out their concerns in mid-2024, focusing on X’s blue checkmark system, which they described as a “deceptive design” that could mislead users and expose them to manipulation. Prior to Musk’s 2022 takeover, the badges signified verified public figures. Musk’s decision to sell checkmarks for $8 a month, without robust verification, left users unable to reliably assess account authenticity, the Commission said.
Officials also criticized X’s ad transparency database, which — under EU law — must display all ads, their funders, and target audiences. The Commission said X’s database suffers from poor design, limited accessibility, and long delays, hindering efforts to detect fraud and influence operations.
Additionally, the platform was accused of blocking researchers from accessing public data, limiting their ability to study risks faced by European users.
“Misleading users with blue checkmarks, hiding ad information, and restricting researchers have no place online in the EU,” said Henna Virkkunen, the Commission’s executive vice-president for tech sovereignty, security and democracy.
In a separate DSA case concluded Friday, TikTok agreed to modify its ad database to meet EU transparency standards.
