X fined €120M by EU for breaching Digital Services Act on transparency & data access. Elon Musk called for EU abolition, sparking debate on regulation & soverei
Elon Musk, owner of X (formerly Twitter), has publicly denounced the European Union following a substantial €120 million penalty levied against his platform by the European Commission. The fine, a direct consequence of X's failure to meet stringent transparency and data access obligations under the EU’s pioneering Digital Services Act (DSA), prompted Musk to assert that the "EU should be abolished" just hours after its announcement. He argued that national sovereignty must be restored, enabling governments to better serve their citizens.
This significant €120 million sanction represents the EU’s inaugural major enforcement action under the DSA, a comprehensive legislative framework established to govern online platforms, combat illegal content, and enhance transparency throughout the 27-member bloc. The penalty emerged from a two-year inquiry into X's operational methodologies, which concluded that the platform fell short of mandatory benchmarks concerning verified identity, advertising disclosure, and access for researchers.
EU regulators specifically identified issues with X’s paid verification system, determining that it misled users by implying authenticity without conducting thorough identity checks. Furthermore, the Commission found that X’s advertising library lacked crucial information regarding the financiers of political and commercial advertisements. It also failed to provide adequate public and researcher access, thereby hindering effective scrutiny of misinformation campaigns and influence operations. Officials emphasized that these breaches directly contravene the DSA’s fundamental objective: fostering a secure and accountable digital environment.
Musk’s vehement reaction, advocating for the EU's dissolution, marks his most aggressive critique of European regulatory authorities to date. He characterized the fine as an instance of excessive regulation, contending that such measures stifle innovation and undermine national self-determination. In prior comments, Musk has accused Brussels of prioritizing bureaucratic control over freedom of expression and technological advancement. The timing of his strong rebuttal has further intensified pre-existing political friction across the Atlantic. Certain US political figures swiftly condemned the EU’s decision, portraying it as an assault on American tech corporations and indicative of growing animosity towards US-based platforms. Musk's declaration directly resonates with these narratives, elevating the discourse from digital policy to broader geopolitical implications.
Under the recent ruling, X is now mandated to undertake immediate reforms across several facets of its platform. The company faces a 60-day deadline to rectify its verification system and a 90-day window to bolster its advertising transparency tools and researcher access protocols. Non-compliance risks even more severe financial repercussions, as the DSA permits penalties amounting to up to 6 percent of a company’s global annual turnover.
Brussels, in its defense, clarified that the DSA’s mandate is not to police speech but rather to uphold principles of transparency, traceability, and accountability. Officials reiterated that all very large online platforms are subject to identical regulations, asserting that X’s documented non-compliance left regulators with no alternative but to implement the specified enforcement action.
This escalating confrontation underscores a deepening ideological chasm between Elon Musk and European institutions. Since acquiring X, Musk has consistently challenged regulatory frameworks he perceives as unduly restrictive. Conversely, EU bodies maintain that such oversight is indispensable for safeguarding users and preserving democratic processes. Beyond the immediate financial implications, the fine prompts critical questions regarding the future scope of X’s operations within Europe. Anticipated increases in compliance costs and potential subsequent conflicts could significantly complicate the platform’s capacity to function unimpeded across the bloc. For Musk, this ongoing dispute has evolved beyond a mere legal challenge, becoming a symbolic battle in a larger ideological struggle over who ultimately defines and shapes the digital public square.