The European Union on Friday imposed a 120-million-euro ($140-million) penalty on Elon Musk’s X for breaching its digital regulations, a move that could trigger a new clash with US President Donald Trump’s administration.
The high-profile inquiry into the social media platform was seen as a test of the EU’s determination to regulate Big Tech. US Vice President JD Vance issued a warning against “attacking” US companies through “censorship” even before the penalty was announced.
Imposing the first fine under its Digital Services Act (DSA) on content, the European Commission said X violated transparency rules, including through the “deceptive design” of its blue checkmark for “verified” accounts.
“This decision is about the transparency of X,” and “nothing to do with censorship,” the bloc’s technology commissioner Henna Virkkunen told reporters as it was announced — pushing back at Vance’s accusation.
The US vice president cautioned the EU on Thursday that it “should be supporting free speech, not attacking American companies over garbage” — in a post on X to which Musk responded “Much appreciated.”
Musk’s platform was first investigated under the EU’s DSA in December 2023 — and was found to have broken the rules on multiple counts in July 2024.
The EU concluded that changes to the platform’s checkmark system after Musk took over in 2022 allowed “anyone can pay” to get a verification badge — without X “meaningfully verifying who is behind the account.”
“This deception exposes users to scams, including impersonation frauds, as well as other forms of manipulation by malicious actors,” the commission said in a statement.
It also found X lacked sufficient transparency on advertising and failed to provide researchers access to public data as required under DSA rules.
According to reports, X is still under investigation regarding the handling of illegal content and manipulation of information.
‘Words to action’
Part one of the X probe appeared stalled since last year, with no progress on a fine.
The EU had to consider the US context — starkly different from 2023 — after Trump returned as president this year with Musk closely involved.
The two later had a falling out, but Musk has reappeared in White House circles, forcing Brussels to weigh the risk that any fine could heighten tensions with Trump.
Vance criticised the EU pre-emptively, citing “rumours” that the commission was preparing a fine for X’s failure to implement censorship.
The DSA allows the EU to fine companies up to six percent of their global annual revenue — and in X’s case, the bloc could have considered Musk’s entire business empire, including Tesla.
Brussels opted for what is seen as a moderate penalty relative to X’s scale — but Virkkunen said it was “proportionate” to the violations.
“We are not here to impose the highest fines. We are here to make sure that our digital legislation is enforced,” said the tech chief. “If you comply with our rules, you don’t get a fine — and it’s as simple as that.”
She added that this was only part of a “very broad investigation” into X, which remains ongoing.
The Center for Countering Digital Hate said the EU action “sends a message that no tech platform is above the laws all corporations have to abide by.”
Washington has openly criticised EU tech regulations, and US Commerce Secretary Howard Lutnick last week suggested a review if Europe wants lower steel duties.
Emphasising the point, a new national security strategy published Friday by Trump’s administration urges Europe to “abandon its failed focus on regulatory suffocation.”
France’s digital affairs minister Anne Le Henanff described the EU’s decision as “historic” in the face of US pressure. “By sanctioning X, Europe shows it is capable of moving from words to action,” she said.
Germany’s digital minister Karsten Wildberger shared the same sentiment, stating the bloc’s digital rules “apply to everyone, no matter where they come from.”
At the same time the X fine was announced, the commission said it had accepted commitments from TikTok to address concerns about its advertising system, although the Chinese-owned platform remains under DSA review for other matters.
