EU Fines Elon Musk's X €120M for DSA Breaches, Igniting Trump Administration Criticism Over "Censorship" Claims

EU Imposes €120 Million Fine on Elon Musk's X for Digital Services Act Violations

The European Union has levied a significant €120 million (US$140 million) fine against Elon Musk's social media platform, X, for violating its stringent digital regulations. This action, announced on a Friday, immediately sparks the potential for renewed friction with former US President Donald Trump's administration.

This high-profile investigation into X was widely viewed as a crucial test of the EU's commitment to effectively regulate major tech companies. Adding to the tension, US Vice-President J.D. Vance had issued a pre-emptive warning against "attacking" American businesses through what he termed "censorship," even before the penalty was officially disclosed.

Transparency Failures Lead to Historic Fine

Marking the inaugural content-related fine under its powerful Digital Services Act (DSA), the European Commission found X guilty of failing to comply with transparency mandates. Specifically, the commission cited the "deceptive design" of X's blue checkmark, which misleadingly conferred a sense of "verified" status on accounts.

Speaking at the announcement, the EU's technology commissioner, Henna Virkkunen, firmly addressed Vance's accusations. She stated, "This decision is about the transparency of X" and underscored that it had "nothing to do with censorship," directly refuting the US Vice-President's charge.

Just days prior, on a Thursday, Vance had taken to X himself to caution the EU, asserting that it "should be supporting free speech not attacking American companies over garbage." Elon Musk, CEO of X, publicly expressed his gratitude for Vance's sentiment, replying, "Much appreciated."

Commissioner Virkkunen, who also holds the portfolio for Tech Sovereignty, Security and Democracy, delivered her remarks during a press conference held in Brussels, Belgium. The EU had initiated its first formal DSA investigation into Musk’s platform in December 2023, subsequently concluding in July 2024 that X had breached several of its regulatory stipulations.