Brussels, December 5, 2025 – European Union regulators have imposed a 120 million euro ($140 million) fine on Elon Musk’s social media platform X, marking the first major enforcement action under the EU’s landmark Digital Services Act (DSA). The unprecedented penalty has sparked outrage in Washington, highlighting growing tensions over international tech regulation.

EU Cites Multiple Violations

The EU’s investigation, which spanned two years, found X guilty of three key violations:

1. Deceptive Blue Checkmarks – The paid verification system misled users about account authenticity, resulting in a 45 million euro ($52.4 million) penalty.
2. Advertising Transparency Failures – X failed to maintain clear advertising records that would allow the identification of scams and politically manipulative ads, earning a 35 million euro ($40.7 million) fine.
3. Blocking Research Access – Researchers were denied access to public data on the platform, a violation that triggered a 40 million euro ($46.6 million) penalty.

EU Digital Chief Henna Virkkunen emphasized that the ruling was not about censorship but about protecting users’ rights. “Deceiving users with blue checkmarks, obscuring information on ads, and shutting out researchers have no place online in the EU,” she said.

US Reaction Sparks Transatlantic Tensions

The fine immediately drew criticism from US officials, with Vice President JD Vance accusing Brussels of penalizing X “for not engaging in censorship,” while Secretary of State Marco Rubio described the sanction as “an attack on all American tech platforms and the American people by foreign governments.”

Elon Musk himself responded on social media, calling the EU ruling “Bulls***,” reflecting his frustration with the regulatory action.

Meanwhile, European politicians expressed relief that enforcement was finally taking place. French Digital Minister Anne Le Henanff called the decision “magnificent,” and Germany’s Digital Minister Karsten Wildberger praised it as a demonstration that Brussels is serious about enforcing digital transparency rules.

Compliance and Future Penalties

Under the Digital Services Act, X now has between 60 and 90 days to submit compliance plans addressing the violations. Failure to comply could result in additional periodic penalties. Experts noted that the $140 million fine represents only a fraction of the maximum sanction allowed under the DSA, which permits fines of up to 6 percent of a company’s global revenue—potentially totaling billions for major platforms.

Broader Implications for Social Media Companies

The ruling against X comes amid ongoing EU investigations into 10 major social media platforms, including Facebook, Instagram, and TikTok. Chinese-owned TikTok avoided penalties on Friday by pledging to enhance advertising transparency.

The EU continues to probe whether X has adequately combated illegal content and information manipulation, potential violations that could result in even larger fines. Analysts warn that this case sets a precedent for transatlantic regulation of tech platforms and highlights the increasing power of the EU to enforce user protection standards globally.

Industry Reactions

Cori Crider, executive director of the Future of Technology Institute, commented on the penalty, noting, “Musk will moan in public – in private, he will be doing cartwheels,” underscoring the symbolic rather than financial impact of the fine.

The decision illustrates the EU’s determination to hold social media companies accountable for user safety, transparency, and accurate information, sending a warning to other US-based platforms operating in Europe.