3 Minutes
Elon Musk reacted sharply after the European Commission hit X, the social network he owns, with a $140 million fine — sparking new debate over platform rules, ad transparency and the reach of EU digital regulation.
What the EU found and why it mattered
After a two-year probe under the Digital Services Act (DSA), the European Commission concluded that X breached EU rules by using a misleading blue verification mark, failing to provide clear ad transparency and not granting researchers sufficient access to public data. The Commission said those failings harmed consumers and misrepresented account verification, and set the fine at roughly $140 million.
Musk’s blistering response: “Dissolve the EU”
Musk publicly rejected the ruling, calling it "nonsense" and taking his criticism further by urging that the European Union be dissolved so member states could better represent their citizens. In a dramatic escalation, X also suspended the European Commission’s advertising account after the fine was announced.
U.S. officials jump into the fray
The decision drew immediate pushback from U.S. officials. Senator Marco Rubio described the penalty as an attack on American tech platforms and their users, while senior U.S. diplomatic voices criticized what they called regulatory overreach that targets U.S. innovation. The dispute highlights rising tensions between European digital rules and U.S. tech companies.
Deadlines and next steps for X
The Commission has given X formal timelines to resolve the flagged issues. X has 60 days to outline how it will address problems with the blue-check verification process, and 90 days to submit a plan fixing ad-transparency shortcomings and restoring researcher access to public data. If the company’s proposals fall short, further enforcement actions could follow under the DSA.
Why this matters for tech and regulation
Beyond the headlines and political rhetoric, this clash underscores a bigger question: how should global platforms comply with regional digital rules? The DSA is designed to increase transparency and safety online, but enforcement against major platforms like X raises fresh debates about jurisdiction, innovation and the balance between user protection and platform freedom. Will X’s fixes satisfy regulators — or will this become a test case for transatlantic tech policy?
Expect more statements, legal filings and close scrutiny in the weeks ahead as X works on its remediation plans and governments weigh the broader implications of enforcement under the DSA.
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