The European Union has imposed a €120 million fine on X, a social media platform owned by Elon Musk, for allegedly breaching its transparency obligations under the 2022 Digital Services Act. The EU’s decision has sparked controversy, with Musk calling for the abolition of the EU and the return of national sovereignty to its member states. Musk argued that the EU’s bureaucracy is “slowly smothering Europe to death” and that the fine is an example of the bloc’s overreach.

The Digital Services Act sets standards for accountability and content moderation on social media platforms. The EU’s ruling stated that X’s blue checkmark system was “deceptive” and that the platform had failed to provide required data access and had weak advertising transparency. Musk’s opponents have downplayed the significance of the fine, noting that it represents only 6% of X’s projected advertising revenue for 2025. However, the principle and precedent of the fine have raised concerns about the EU’s growing influence over social media companies.

The EU has started 14 investigations into compliance with the Digital Services Act, and serious criminal charges against social media companies and their owners may be forthcoming. The case of Telegram co-founder Pavel Durov, who was arrested and indicted on charges including complicity in the distribution of child pornography, has raised concerns about the EU’s use of heavy-handed tactics to silence dissenting voices. Durov claimed that he was asked to ban Romanian conservatives ahead of the country’s elections, a request he refused.

Musk has also spoken out about the EU’s attempts to censor speech, claiming that the European Commission offered X a secret deal to quietly censor speech without telling anyone. The future of social media in the EU looks uncertain, with the potential for innovators to be held personally responsible for potential abuse of their tools. This could discourage the development of new technologies and lead to extreme penalties for those who fail to comply with the EU’s regulations.

The EU’s actions have significant implications for free speech and the development of social media platforms. As the EU continues to exert its influence over social media companies, it remains to be seen how these companies will respond to the growing regulatory pressure. The outcome of the EU’s investigations and the fate of X and its owner, Elon Musk, will be closely watched in the coming months.