Elon Musk's X Platform Fined $140 Million by EU for Digital Services Act Violations

Rival TikTok avoided penalties by making concessions. (Representational)

Brussels:

The European Union tech regulators imposed a €120 million ($140 million) fine on Elon Musk's social media platform X on Friday for violating EU online content regulations. This marks the first penalty under the landmark legislation, likely to provoke criticism from the US government.

Meanwhile, competitor TikTok managed to avoid penalties by offering concessions.

The Trump administration has criticized Europe's crackdown on Big Tech—aimed at ensuring fair competition for smaller rivals and greater consumer choice—claiming it unfairly targets American companies and censors American voices.

In response, the European Commission, the EU's executive body, maintained that its laws do not discriminate based on nationality and are simply defending digital and democratic standards that often serve as global benchmarks.

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The sanction against X followed a two-year investigation under the Digital Services Act (DSA), which requires online platforms to take stronger measures against illegal and harmful content.

The EU had previously charged ByteDance's TikTok in May with violating DSA requirements to publish an advertisement repository that would enable researchers and users to identify fraudulent advertisements.

EU tech chief Henna Virkkunen explained that X's fine was proportionate and calculated based on the nature, gravity, and duration of the infringements affecting EU users.

"We are not aiming to impose maximum fines. Our goal is ensuring compliance with digital legislation—follow our rules and you won't be fined. It's that straightforward," she told reporters.

"It's crucial to emphasize that the DSA has nothing to do with censorship," Virkkunen added.

She indicated that upcoming decisions on companies charged with DSA violations would likely be resolved more quickly than the two-year process in X's case.

"I fully expect we'll reach final decisions faster now," she stated.

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In October, Meta and TikTok were charged with breaching DSA transparency obligations, while Chinese marketplace Temu was accused of violating rules preventing the sale of illegal products.

X did not immediately respond when contacted for comment.

Prior to the EU decision, US Vice President JD Vance posted on X: "Rumors swirling that the EU commission will fine X hundreds of millions of dollars for not engaging in censorship. The EU should be supporting free speech not attacking American companies over garbage."

TikTok, which committed to enhancing the transparency of its ad library, urged regulators to apply the law consistently across all platforms.

EU regulators specified that X's DSA violations included misleading design of its blue verification checkmark, lack of transparency in its advertising repository, and failure to provide researchers access to public data.

The Commission added that investigations continue into the dissemination of illegal content on X, measures to combat information manipulation, and a separate probe into TikTok's design, algorithmic systems, and child protection obligations.

Under the DSA, fines can reach up to 6% of a company's annual global revenue.