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Elon Musk’s social platform X has been hit with a €120 million ($140 million) fine for breaching the European Union’s contentious content-moderation rules — a penalty lower than many expected but one that is still likely to fuel tensions with the White House over online speech and regulation.
This marks the first-ever enforcement action under the Digital Services Act (DSA). According to the European Commission, X misled users with its paid blue-check system, obstructed researchers seeking data access, and failed to properly maintain an ad transparency database. Officials emphasized that the penalty was not calculated based on Musk’s wider business empire in space, infrastructure, and neuroscience, despite earlier consideration of doing so.
Although the fine is insignificant compared to Musk’s estimated $467 billion net worth, it lands after months of pressure from President Donald Trump, who has repeatedly criticized the EU’s strict approach to US tech companies. The dispute underscores a growing rift between Europe and the US over digital sovereignty, free-speech standards, and privacy rights in the online era.
Before the decision was announced, US Vice President JD Vance posted on X that the EU should “support free speech, not attack American companies over garbage.”
The investigation began in December 2023 but gained political weight as Musk publicly supported Trump’s presidential campaign and served as a senior adviser in the early months of the administration through the “Department of Government Efficiency.”
EU digital chief Henna Virkkunen said this first DSA non-compliance ruling establishes a precedent that will streamline future cases. X now has 60 days to propose fixes and 90 days to implement them or risk further penalties.
According to officials, the fine will be addressed to Musk and his AI firm xAI, which now controls X following a recent acquisition.
Under the DSA, platforms can be fined up to 6% of their global revenue for failing to curb illegal content, address disinformation, or meet transparency obligations. Regulators said this fine was determined using the principle of proportionality, not overall revenues.
The EU had previously hinted that Musk’s full private business revenue — including SpaceX’s projected $15.5 billion in 2025 revenue — could serve as the basis, rather than just X’s expected $2.3 billion in ad income this year.
Multiple US tech giants remain under EU scrutiny. Apple, Google, and Meta are all facing DSA or Digital Markets Act probes. The bloc has recently fined Apple €500 million and Meta €200 million, and has issued major penalties in past years, including more than $8 billion in fines for Google and a €13 billion tax order against Apple.
The EU still needs to rule on other possible DSA violations by X, including more serious issues related to illegal content, election disinformation, and the platform’s Community Notes system.
Musk has previously stated he will challenge any fine in court, a move that could delay payment for years.
