The European Commission has imposed a fine of €120 million on X, a social media platform owned by tech mogul Elon Musk, for breaching its transparency obligations under the 2022 Digital Services Act. The ruling cited several infractions, including a deceptive blue-checkmark design, weak advertising transparency, and failure to provide required data access.
In response, Musk has called for the dissolution of the European Union, characterizing it as a “bureaucratic monster” that is stifling innovation through excessive regulations. The billionaire entrepreneur, who also owns Tesla and SpaceX, has been critical of the EU’s regulatory approach, previously describing it as a “giant cathedral to bureaucracy.”
The fine has drawn criticism from US officials, with Secretary of State Marco Rubio denouncing it as an “attack on all American tech platforms and the American people by foreign governments.” Vice President J.D. Vance argued that the EU targeted X for not engaging in censorship, while US Ambassador to the EU Andrew Puzder condemned the move, saying Washington opposes censorship and will challenge burdensome regulations that target US companies abroad.
European Commission Executive Vice President for Tech Sovereignty, Security and Democracy Henna Virkkunen defended the fine, stating that deceptive practices, such as misusing blue checkmarks and obscuring information on ads, have no place online in the EU. Polish Foreign Minister Radoslaw Sikorski responded to Musk’s criticism by suggesting he should “go to Mars” if he is concerned about censorship, in a reference to accusations that the entrepreneur had performed a Nazi salute while celebrating President Donald Trump’s inauguration.
The dispute highlights ongoing tensions between the EU and US tech companies over regulatory issues, particularly with regards to content moderation and transparency. The EU’s Digital Services Act aims to set standards for accountability and transparency, but some US companies and officials have pushed back against what they see as overly burdensome regulations. The fine imposed on X is likely to add to these tensions, with potential implications for the future of tech regulation in the EU and beyond.
