The European Union has taken a decisive step in its crackdown on major technology companies by slapping a hefty fine on the social media platform X, owned by billionaire Elon Musk. On Friday, December 5, 2025, the bloc announced a €120 million (approximately $140 million) penalty against the company for violating its landmark digital regulations.
The Core of the Controversy: Transparency and 'Deceptive Design'
This landmark penalty, the first of its kind related to content under the EU's powerful Digital Services Act (DSA), centres on accusations of non-compliance with transparency rules. The European Commission found X guilty of several breaches, most notably concerning its verification system.
The investigation concluded that changes to the platform's blue checkmark system, implemented after Musk's takeover in 2022, were misleading. The EU stated that the system allowed "anyone can pay" to get a badge of authenticity without X "meaningfully verifying who is behind the account." This, the commission argued, exposed users to potential scams and impersonation frauds by malicious actors.
Beyond the checkmark issue, the EU also determined that X failed to be sufficiently transparent about its advertising practices and did not provide researchers with adequate access to public data, as required by the DSA.
A Transatlantic Political Storm
The fine arrives amidst heightened geopolitical tensions. The move risks a fresh clash with the administration of US President Donald Trump, who returned to office this year. Even before the penalty was made public, US Vice President JD Vance fired a warning shot.
In a post on X on Thursday, Vance accused the EU of "attacking American companies over garbage" and stated it should be "supporting free speech not attacking American companies." Elon Musk replied to the post with "Much appreciated."
The EU's technology commissioner, Henna Virkkunen, directly countered these claims during the announcement. "This decision is about the transparency of X" and "nothing to do with censorship," she told reporters, pushing back against Vance's charge of censorship.
A Proportional Penalty and Ongoing Scrutiny
While the DSA grants the EU power to impose fines of up to 6% of a company's global annual revenue—which for X could have been calculated based on Musk's entire empire, including Tesla—Brussels settled on what is seen as a moderate sum. Commissioner Virkkunen defended the €120 million as "proportionate" to the violations.
"We are not here to impose the highest fines. We are here to make sure that our digital legislation is enforced," she stated, adding, "If you comply with our rules, you don’t get a fine — and it’s as simple as that."
She also emphasised that this fine is just one part of a "very broad investigation" into X, which remains ongoing. The platform is still under EU scrutiny over its efforts to tackle the spread of illegal content and information manipulation.
The EU's action has drawn mixed reactions. Advocacy groups like the Center for Countering Digital Hate praised the move, saying it sends a clear message that no tech platform is above the law. In Europe, politicians hailed the decision. France's digital affairs minister, Anne Le Henanff, called it "historic" and said Europe showed it is "capable of moving from words to action" despite US pressure.
Germany's digital minister, Karsten Wildberger, echoed this, stating the bloc's digital rules "apply to everyone, no matter where they come from." Meanwhile, the Trump administration's new national security strategy, also released Friday, urged Europe to "abandon its failed focus on regulatory suffocation," highlighting the deep transatlantic divide on tech governance.
In a related development, the European Commission announced it had accepted commitments from TikTok to address concerns over its advertising system, although the Chinese-owned platform remains under a separate DSA investigation.
