AI & Cloud

EU fines Elon Musk’s X $140 million over platform rule violations

EU fines Elon Musk’s X $140 million over platform rule violations

The European Union has issued a $140 million fine against X the social media platform formerly known as Twitter and owned by Elon Musk after ruling that the company failed to comply with several key obligations under Europe’s Digital Services Act (DSA). The decision marks one of the most forceful regulatory actions taken against a major tech platform since the law came into force.

According to the European Commission, the penalty stems from three main violations. First, regulators found that X’s system for assigning blue check marks was misleading, because the platform allowed users to pay for verification without confirming their identities. Officials say this exposed people to impersonation risks, scams and political manipulation. Second, X failed to properly maintain a functioning advertising repository, a tool required under the DSA to track and disclose political and commercial adverts. Third, the company did not provide adequate data access for researchers, undermining efforts to monitor disinformation and online harms.

A Commission spokesperson, Thomas Regnier, stressed that Europe had not intended to fine the company noting that other major platforms, such as TikTok, had cooperated with regulators and offered concessions to avoid penalties. “If you engage constructively with the Commission, we settle cases,” Regnier said. “If you do not, we take action.”

X, however, has taken a combative approach. Musk has repeatedly argued that the DSA infringes on free expression and has said he will fight the charges in court. For months, he has framed Europe’s enforcement as politically motivated, a message echoed by some U.S. lawmakers who claim Brussels is unfairly targeting an American company.

The tensions underline broader global debates about the role and responsibility of large digital platforms. Under the DSA, tech giants must proactively address harmful content, safeguard against manipulation and provide unprecedented transparency into their ad systems and algorithms. X has rolled back many moderation and transparency tools since Musk took over in 2022, prompting growing alarm among regulators.

The fine comes after two years of escalating disputes between the EU and X. The Commission has repeatedly warned the company about disinformation surges, advertiser disclosures and platform safety, but officials say X provided insufficient cooperation.

As Musk prepares to challenge the ruling, the case is shaping up to be a major test of Europe’s regulatory power and a signal to other tech companies that non-compliance with the DSA will carry steep consequences.

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