Elon Musk’s social media company X, formerly known as Twitter, has been fined 120 million euros ($140 million) by EU tech regulators. The European Union claims that the platform breached its online content rules.
According to the EU, under the Digital Services Act (DSA), X misled users regarding its verified blue checkmarks, which were presented as indicators of account authenticity. The platform also failed to provide sufficient data access for researchers. This situation stems from an investigation into X’s compliance with DSA transparency rules initiated two years ago.
EU Clarifies DSA's Role in Content Regulation
The bloc’s tech regulator asserts that the DSA has nothing to do with censorship. The EU claims that users could be deceived into believing that the identity of individuals with blue tick marks was verified, when in reality, anyone could pay for a blue tick. Evidence has been found indicating malicious actors abusing the system.
Elon Musk, who acquired the platform for $44 billion in 2022, has argued that the DSA rules amount to censorship of speech, which he finds unacceptable.
In response to Musk’s accusations of censorship, the European Commission stated that its rules are designed to ensure a safe and fair online environment for European citizens, respecting their rights, particularly freedom of expression. Among these rules are requirements for companies to inform users when their accounts are restricted and to provide recourse for users who are banned.
Furthermore, the Commission indicated that its review of X revealed a lack of transparency surrounding advertising and that X did not provide data for research purposes as mandated by EU rules. The Commission stated, "In particular, X prohibits eligible researchers from independently accessing its public data, such as by scraping, as stated in its terms of service."
The European Commission's tech chief, Henna Virkkunen, described X's fine as proportionate, calculated based on the nature and gravity of the infringements, the number of affected EU users, and their duration.
Under the DSA, which became effective two years ago, the EU can impose fines of up to 6% of an online platform’s yearly global revenue for failing to address illegal content and disinformation, or for not adhering to transparency rules.
Virkkunen emphasized, "We are not here to impose the highest fines. We are here to make sure that our digital legislation is enforced, and if you comply with our rules, you don’t get a fine. And it’s as simple as that. I think it’s very important to underline that DSA is having nothing to do with censorship."
This penalty aligns with the EU’s ongoing enforcement actions against major technology companies, including previous fines levied against Meta and Apple. The situation is pressuring X to potentially overhaul its premium subscription model, especially given the low initial post-engagement metrics.
Broader EU Scrutiny of Big Tech and US Companies
Beyond X, the EU’s investigations have extended to other US companies. Earlier this year, the EU fined Apple and Meta a combined 700 million euros for breaching the bloc’s landmark Digital Markets Act (DMA).
As reported by Cryptopolitan, Apple was fined €500 million ($570 million) for restricting how app developers could communicate with users about alternative sales and offers. Meta, conversely, was fined €200 million (approximately $230 million) for its controversial "pay or consent" model, which requires users in the EU to either pay for ad-free access to Facebook and Instagram or consent to targeted advertising.
Europe's intensified scrutiny of big tech is seen as an effort to ensure fairer competition for smaller rivals and provide consumers with more choices. This approach has drawn criticism from the administration of former US President Donald Trump, which contends that these regulations single out American companies and amount to censorship of Americans.
Prior to the announcement of the fine against X, US Senator JD Vance stated, "The EU should be supporting free speech, not attacking American companies over garbage."
However, the EU’s executive branch maintains that its laws do not target any specific nationality and that it is merely upholding its digital and democratic standards, which often serve as a benchmark globally.