Elon Musk’s social media enterprise, X, received a fine of 120 million euros (approximately $193.3 million Cdn) from EU tech regulators on Friday for violating online content regulations, marking the first penalty under significant legislation that once again faced criticism from the U.S. government.
Despite X not providing a comment when contacted via email, Musk responded with the word “Bulls–t” in reply to a European Commission post regarding the fine. Musk also shared various messages criticizing the decision and emphasized the importance of freedom of speech in democracy and the necessity of understanding what one is voting for.
In contrast, X’s competitor, TikTok, managed to avoid a penalty by making concessions. The European Union’s efforts to rein in Big Tech to promote fair competition among smaller players and enhance consumer choices have drawn disapproval from the Trump administration, which argues that it unfairly targets American firms and restricts Americans.
The European Commission, the executive arm of the EU, clarified that its regulations are not aimed at any specific nationality but are meant to uphold digital and democratic standards that typically serve as a global benchmark.
The fine imposed on X by the EU tech authorities followed a two-year investigation under the Digital Services Act (DSA) of the bloc, which mandates online platforms to take more effective measures against illegal or harmful content.
Henna Virkkunen, the EU’s tech chief, stated that X’s fine was reasonable and determined based on the nature of the violations, their impact on EU users, and their duration. She emphasized that the objective is not to levy the highest fines but to ensure compliance with digital regulations. Virkkunen underscored that the DSA is not about censorship and emphasized that future decisions on companies facing DSA charges are expected to be resolved more swiftly than the two-year process in the X case.
U.S. Secretary of State Marco Rubio and Federal Communications Commission Chairman Brendan Carr criticized the EU’s fine, viewing it as an attack on American tech platforms and people. Rubio denounced the fine as an attempt to censor Americans online, while Carr characterized it as penalizing a successful U.S. tech company for its success.
Meta and TikTok previously faced charges of breaching DSA transparency obligations, with Chinese online marketplace Temu accused of violating rules against illegal product sales. X has a period of 60 to 90 working days to implement measures to comply with the DSA, depending on the specific issues.
Before the EU’s ruling, U.S. Vice-President JD Vance expressed concern over rumors of a substantial fine for X, highlighting the need for the EU to support free speech rather than target American companies. TikTok, which committed to enhancing transparency in its ad library, called for consistent application of the law across all platforms.
EU regulators cited X’s violations of the DSA, including deceptive design practices for verified accounts, lack of advertising transparency, and failure to grant researchers access to public data. The Commission disclosed ongoing investigations into illegal content dissemination on X and measures to combat misinformation, along with a separate inquiry into TikTok’s algorithmic systems and child protection obligations.
Potential fines under the DSA can amount to as much as six percent of a company’s global annual revenue.
