The European Union has issued a €120 million fine against Elon Musk’s social media platform X for violating the bloc’s Digital Services Act (DSA), marking the first major enforcement action under the landmark regulation and sparking renewed tensions with Washington.
EU regulators said X breached transparency obligations through what they described as the “deceptive design” of its blue checkmark verification system, while also failing to provide clear disclosures on advertising practices and researcher access to public data.
Henna Virkkunen, the EU’s tech commissioner, emphasised that the penalty targeted transparency failures rather than free-speech concerns. Her comments followed criticism from US vice president JD Vance, who accused Europe of “attacking American companies over garbage,” prompting Musk to respond approvingly on social media.
Findings of the DSA Investigation
The investigation, opened in December 2023, concluded that X no longer conducted meaningful identity verification after Musk revamped the platform’s verification model. Under the revised system, the EU noted that “anyone can pay” for a blue badge, creating opportunities for impersonation, fraud, and manipulation by malicious actors.
Regulators also found that X fell short of transparency requirements for both political and commercial advertising. In addition, the platform did not provide independent researchers with the level of data access mandated by the DSA. Other examinations—such as those related to illegal content and disinformation—are still underway.
Political Tensions and Enforcement
The case appeared to slow earlier this year amid concerns over how the United States might react, particularly following Donald Trump’s return to the White House and Musk’s renewed influence in Washington. Despite the political backdrop, the European Commission moved forward, with Virkkunen insisting the financial penalty was “proportionate” to the violations. “Our goal is not to impose maximum fines but to ensure compliance with digital law,” she said.
The DSA allows regulators to fine companies up to six percent of their global annual revenue. Although the commission could have based the fine on Musk’s broader business empire, including Tesla, it opted for what is viewed as a relatively moderate figure.
Reactions Across Europe and the US
Digital safety advocates welcomed the ruling. The Center for Countering Digital Hate said the decision reinforced the principle that “no tech platform is above the law.” France’s digital affairs minister, Anne Le Henanff, described the fine as “historic,” adding that it demonstrated Europe’s ability to move from “statements to concrete action.”
The Biden and Trump administrations have both expressed concerns about the EU’s regulatory direction. Last week, US Commerce Secretary Howard Lutnick urged Brussels to reconsider its digital framework if it wished to progress discussions on steel tariffs. A national security strategy released by the Trump administration also urged Europe to “abandon its failed focus on regulatory suffocation.”
Alongside the X ruling, EU authorities announced they had accepted commitments from TikTok addressing advertising transparency concerns. The Chinese-owned platform, however, remains under DSA investigation for other potential breaches. Officials maintained that US political pressure had no influence on their handling of the X case, stressing that legal robustness remained their primary focus.