Elon Musk has intensified his criticism of the European Union (EU) after the bloc fined his social media company, X, €120 million ($140 million) for misleading users with “deceptive” blue checkmarks and insufficient transparency in its advertising repository.
The fine follows a two-year investigation under the Digital Services Act (DSA), a landmark EU regulation adopted in 2022 to oversee online platforms. Musk initially reacted on X to the ruling with a blunt dismissal, later amplifying his criticism by calling for the EU to be abolished.
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Musk Criticizes the EU
In a post on X on Saturday, Musk wrote, “The EU should be abolished, and sovereignty returned to individual countries, so that governments can better represent their people.”
The comments reflect Musk’s frustration with what he perceives as overreach by the European Commission, which maintains that its actions are grounded in due process rather than targeting any specific company or jurisdiction.
EU Defends Its Decision
Commission spokesperson Thomas Regnier told CNBC that the EU’s case is “solid” and not directed at content moderation, but at ensuring transparency for European citizens.
The EU’s ruling identified several compliance failures by X, including:
- The “deceptive design” of its blue checkmark system
- Lack of transparency in its advertising repository
- Failure to provide public data access for researchers
Henna Virkkunen, Executive Vice President for Tech Sovereignty, Security, and Democracy, stated, “With the DSA’s first non-compliance decision, we are holding X responsible for undermining users’ rights and evading accountability.”
X now has 60 days to submit a plan addressing the blue checkmark issue and 90 days to resolve advertising transparency and data access concerns. Failure to comply may result in periodic penalties.
U.S. Officials Join the Criticism
The fine has also drawn criticism from U.S. officials. Senator Marco Rubio described the penalty as “an attack on all American tech platforms and the American people by foreign governments.”
Similarly, Andrew Puzder, U.S. Ambassador to the EU, called the fine “excessive” and a result of EU regulatory overreach targeting American innovation. Puzder emphasized that the U.S. expects the EU to maintain fair, open, and reciprocal trade standards.
Moving Forward
While Musk and some U.S. officials frame the ruling as punitive, the European Commission underscores that the decision focuses strictly on transparency obligations under the DSA, not content moderation. X.ai, the parent company of X, and the Commission have been contacted for further comment.
Frequently Asked Questions
Why did the EU fine X €120 million?
The European Union fined X for misleading users with “deceptive” blue checkmarks, insufficient transparency in its advertising repository, and failing to provide access to public data for researchers. The fine is part of enforcement under the Digital Services Act (DSA).
What is the Digital Services Act (DSA)?
The DSA is a European Union regulation adopted in 2022 that sets rules for online platforms to increase transparency, accountability, and user protection. It requires platforms to provide clear information on content moderation, advertising, and data access.
How did Elon Musk respond to the fine?
Musk criticized the EU, calling for its abolition and arguing that sovereignty should return to individual countries. He has also dismissed the fine as unjust and excessive.
Are U.S. officials involved in the debate?
Yes. Senator Marco Rubio called the fine “an attack on American tech platforms,” and U.S. Ambassador to the EU Andrew Puzder criticized it as regulatory overreach targeting American innovation.
Does the fine relate to content moderation?
No. The European Commission clarified that the fine is not about content moderation but about transparency requirements for advertising and user verification under the DSA.
What must X do next?
X has 60 days to address the blue checkmark issue and 90 days to resolve problems with its advertising transparency and public data access. Failure to comply may result in additional periodic penalties.
Conclusion
The €120 million fine against X underscores the European Union’s commitment to enforcing the Digital Services Act and holding major tech platforms accountable for transparency and user rights. Elon Musk’s sharp criticism and calls to abolish the EU highlight growing tensions between U.S. tech leaders and European regulators.
