After the European Union slapped a €120 million ($140 million) fine on Elon Musk’s social media platform X, it marked a first major enforcement action under the EU’s strong Digital Services Act (DSA). The punishment indicates a big leap in the conflict between the most vocal tech billionaire in the world and Europe’s tech regulators, which are getting more and more assertive.
The European Commission stated that X violated DSA provisions several times, most notably that relate to transparency, user safety, and researcher data access. The core concern was the platform’s controversial paid blue checkmark system, through which, according to the regulators, the users were deceived because it gave less clarity to the separation between verified public figures and the subscribing users. According to the Commission, this not only facilitated the impersonation but also the scams and misinformation, thus, they considered the tech as “deceptive.”
The regulators also pointed out that X did not offer enough access to platform data to independent researchers, thus, the EU’s capability of monitoring systemic risks like election meddling, disinformation in a coordinated way, and online harm was weakened.
The top EU digital official Henna Virkkunen said a probe that started in December 2023 necessitated deep legal examination. “Such a decision needed to stand on the most solid legal grounds,” she said, adding that the case matured at the time when Musk’s political clout in the U.S. was increasing rapidly.
Musk didn’t hold back his anger against the EU. On X, he launched a series of attacks against the European Union’s legitimacy, announcing:
“The EU must be abolished and sovereignty given back to the individual nations so that more local, governments can indeed represent their people.”
By this he meant it very seriously and when he was questioned, he answered: “I mean it. No joke.” In order to mitigate the cultural impact of what he said, Musk added:
“I love Europe but not the bureaucratic monster that is the EU.”
Musk’s remarks have made people angry all over Europe and at the same time, they have activated the opponents of Brussels’ regulatory power, especially among nationalist and free-speech advocacy groups.
The battle soon made its way into US politics with the help of the political leaders. JD Vance, US Vice President, was one of those who publicly sided with Musk and blamed the EU for restricting free speech.
:”The EU should be the biggest advocate of free speech, not the one that puts attacks on American companies extending nonsense,” Vance stated.
For the past year the relations between Musk and ex-President Donald Trump in the political scene have been getting stronger by miles. He was not only a major campaign donor but he also took a visible role in the formation of Trump’s revision of federal oversight through the newly formed Department of Government Efficiency (DOGE). Now, one can say that his harsh criticism of European regulation fits into a bigger ideological divide over tech governance between Washington and Brussels, which is the broader view of the conflict.
What the court decision implies for X and Big Tech
X must, according to the DSA, within 60 days submit a plan for correcting the deficiencies and fully implement changes within 90 days. If the enterprise fails to adhere to these requirements, the Commission may issue further daily fines or even restrict their operations.
This judgment is very important worldwide. The Digital Services Act, which is binding for 450 million consumers in the EU, endows regulators with
quite comprehensive power over online platforms that have a systemic impact.
The same structure has been used to target Apple, Google, Meta, and Amazon for similar investigations. Musk already suggested that X would protest the penalty in European courts, thus, there might be a multi-year legal battle in which the bloc’s digital platform landscape could be changed.
A global battle for digital dominance
Europe, which tries to be the toughest tech regulator worldwide, and Musk, who plays the role of the most defiant figure of Silicon Valley, the dispute is no longer about one fine. It is about the control of the rules that govern the digital public square whether it is by the government, which is elected, or by the private technology empires.
Musk considers the issue as one of national sovereignty and free speech whereas the EU perceives it as a fight for transparency and user protection. The consequence of the battle will not only mean a giant step for the regulation of X but also platform regulation globally will take a different turn.
