EU imposes 120 million euro fine on X, risking anger from Trump

The European Union has imposed a 120 million ($140 million) fine on Elon Musk's social media platform X for violating its digital regulations, a move that could provoke friction with the administration of US President Donald Trump. This high-profile action marks the EU's first enforcement under its Digital Services Act (DSA) targeting content transparency.

The EU stated the penalty is linked to X's failure to comply with rules on transparency, particularly concerning the "misleading design" of its blue verification checkmark. Henna Virkkunen, the EUs digital chief, emphasized that the decision centers on transparency, not censorship, directly countering US Vice President JD Vances warnings.

Prior to the announcement, Vance criticized the EU for allegedly attacking American firms and urged support for free speech. Musk responded positively to Vances post, thanking him for the support.

X has been under the EUs formal DSA investigation since December 2023. Preliminary findings in July 2024 revealed multiple rule violations. A key concern was the verification system introduced after Musk acquired Twitter in 2022, which allowed users to pay for what was originally a badge of authenticity.

The investigation also identified shortcomings in Xs advertising transparency and its failure to provide researchers access to public data as required under the DSA. Additional inquiries into the platforms handling of illegal content and misinformation remain ongoing.

The DSA permits fines up to six percent of a companys global annual revenue. While the EU could have calculated Xs penalty based on Musks entire business empire, including Tesla, the imposed sum is considered moderate but proportionate to the identified violations. Virkkunen stated, "We are not here to impose the highest fines. We are here to ensure our digital legislation is enforced."

The EU stressed that this fine is part of a broader investigation into X and that the decision was grounded in legal compliance rather than US political considerations. Meanwhile, TikTok has offered commitments to address advertising concerns but remains under DSA scrutiny for other issues.

Author: Jackson Miller