Elon Musk. Credit: Photo Agency / Shutterstock.com
On Friday, December 5, the European Union fined social media company X, owned by Elon Musk and formerly known as Twitter, 120 million euros (approximately $140 million) after ruling that the platform violated EU online content and transparency standards. The fine is the first sanction issued under blockchain’s landmark Digital Services Act (DSA), and the measure is likely to spark anger within the US government.
The European Commission announced a wide-ranging DSA fine and found that X had failed to comply with several transparency obligations, including the alleged “misleading design” of its blue certification badge. In contrast, TikTok avoided fines after making concessions to regulators.
EU defends crackdown on Big Tech
The EU’s crackdown on major technology platforms is aimed at ensuring fairer competition for smaller rivals and greater choice for consumers. But the U.S. government has repeatedly accused Brussels of unfairly targeting U.S. companies and restricting Americans’ ability to share content online.
The European Commission, which acts as the EU’s executive arm, responded that its regulations do not identify nationalities, but instead uphold digital and democratic standards, which often serve as global benchmarks.
EU tech chief says fines do not amount to censorship
The fine followed a two-year investigation into X under the DSA, which requires online platforms to step up efforts to curb illegal and harmful content. A separate EU investigation into TikTok earlier this year reached a preliminary conclusion that the ByteDance-owned app failed to meet DSA requirements to maintain a transparent public advertising repository that allows researchers and users to identify fraudulent advertising.
EU technology chief Hena Virkunen said the fine imposed on X was “modest but proportionate”, calculated according to the nature of the violation, the number of EU users affected and the length of time the platform remained non-compliant.
“We are not here to impose the highest possible fine. We are here to ensure the application of digital law. If you follow our rules, you will not be fined. It is as simple as that,” she said.
“It is important to emphasize that DSA has nothing to do with censorship,” Virkunen added. She said decisions against other companies accused of violating the DSA should be concluded more quickly than the long-running lawsuit against X. “We expect to reach a final decision more quickly in the future,” she said.
US official says EU should not target US companies
Meta and TikTok were both accused in October of failing to comply with the DSA’s transparency obligations, and Chinese e-commerce platform Temu was accused of violating rules meant to prevent the sale of illegal goods.
X did not respond to an emailed request for comment.
Prior to the EU’s announcement, US Vice President J.D. Vance commented on X, saying, “Rumor has it that the European Commission will fine X hundreds of millions of dollars for failing to censor. The EU should stand up for free speech, not attack American companies over frivolous content.”
TikTok, which has pledged to overhaul its ad library to increase transparency, called on regulators to enforce the DSA consistently and fairly across all platforms.
Committee outlines major violations
EU regulators said Company X’s violations included misleading design of blue checkmarks on verified accounts, insufficient transparency in advertising repositories, and insufficient access to public data for researchers.
The Committee confirmed that its investigation into Company X’s handling of illegal content, countermeasures against tampering, and evaluation of its design and algorithmic systems continues. A separate investigation into whether TikTok meets EU child protection requirements also remains unresolved.
Under the DSA, fines can reach up to 6% of a company’s global annual revenue, leaving open the possibility of significantly higher fines in the future.
