The European Union has imposed fines for the first time under the Digital Services Act (DSA), levying a €120 million penalty on the social network X, owned by Elon Musk. This decision heightens tensions between Brussels and Washington, as the two sides have differing approaches to regulating free speech and tech giants.
This is reported by Finway
Reasons for the fine and requirements for X
The European Commission concluded that the paid blue checkmark feature on X misled users, while the platform hindered analysts’ access to data and failed to ensure proper organization of transparent advertising storage. According to the ruling, the company has 60 days to find solutions to address the identified violations and 90 days to implement the necessary changes. Should X fail to comply, it may face additional sanctions.
“The fine is a small fraction of Musk’s $467 billion fortune and comes after months of intense pressure from U.S. President Donald Trump, who has repeatedly criticized the bloc’s strict fines and attempts to regulate American tech companies.”
Context of the sanctions and next steps
The imposed fine will not affect other areas of Elon Musk’s business, particularly in the fields of space, infrastructure, and neurology, although the regulator considered such options. The confrontation surrounding X highlights the deepening divergences between the EU and the U.S. regarding free speech and the activities of tech corporations. The political implications are heightened by Musk’s support for Donald Trump’s election campaign and his role as an advisor on government efficiency at the beginning of the presidential term.
Under the DSA, which has been in effect since 2023, the EU can impose fines of up to 6% of the annual global revenue of online platforms for ineffective measures against illegal content, misinformation, or failure to meet transparency requirements. In addition to X, the EU is investigating Apple, Google (owned by Alphabet), Meta Platforms, and other American tech giants. Recently, fines were imposed on Apple (€500 million), Meta (€200 million), and Google (over $8 billion), along with a demand for Apple to pay €13 billion in tax arrears to Ireland.
The investigation into X remains open: the European Commission has yet to make a decision regarding potential more serious violations related to the monitoring of illegal content, election misinformation, and the use of community notes. Musk has already announced his intention to contest any penalties in court, which could delay the payment of the fine for years.