European Union imposes $140 million fine on X for violating online content regulations, TikTok reaches settlement with compromises

BRUSSELS, Dec 5 The European Union has fined Elon Musks social media platform X 120 million euros ($140 million) for failing to comply with EU regulations on online content, marking the first enforcement action under the EUs new Digital Services Act (DSA). TikTok avoided a financial penalty by agreeing to make specific adjustments.

The EUs action is part of a broader effort to regulate major technology companies, ensuring smaller competitors can thrive and consumers have more options. Critics in the United States argue that the rules unfairly target American firms and amount to censorship, a claim the European Commission rejects, emphasizing that the regulations uphold digital and democratic standards rather than nationality-based targeting.

Regulatory Background

The fine against X concluded a two-year investigation under the DSA, which obligates online platforms to act against illegal and harmful content more effectively. In a related case, TikTok was charged in May for not maintaining a publicly accessible advertising repository to help users and researchers identify scam ads.

Henna Virkkunen, the EUs tech chief, described Xs penalty as proportionate, taking into account the severity and duration of the violations and their impact on EU users. Our goal is not to issue the largest fines but to ensure compliance with digital regulations. Companies that follow the rules will not face penalties, she said, stressing that the DSA is not about censorship.

Other Enforcement Actions

In October, Meta and TikTok faced charges for failing to meet DSA transparency requirements, while Chinese marketplace Temu was accused of selling illegal products. Xs violations included misleading verification badges, opaque advertising practices, and restricted access for researchers to public data.

TikTok responded by pledging improvements to its ad library and called for consistent enforcement of DSA regulations across all platforms. EU authorities continue investigations into Xs handling of illegal content and efforts to prevent misinformation, alongside a separate probe into TikToks algorithmic systems and child protection measures.

DSA fines can reach up to 6% of a companys global annual revenue.

Sources:

• EU fines X $140 million for breaching online content rules, TikTok settles with concessions