EU Fines X €120 Million in First Big Hit Under New Tech Law

The European Union on Friday imposed a €120 million fine on Elon Musk’s social media platform X, marking the first major penalty under its sweeping Digital Services Act (DSA). The decision follows a two-year investigation into how the platform handles illegal content, user transparency, and advertising practices.

The ruling arrives at a moment of heightened tension between Europe and the United States, with Washington accusing Brussels of unfairly targeting American tech giants. EU officials, however, insisted the action is strictly about enforcing digital safety standards that apply equally to all platforms.

According to the Commission, X breached several DSA rules, including using a misleading design for its blue checkmark, failing to ensure transparency in its advertising repository, and restricting researcher access to public data. Officials said these gaps directly affected millions of EU users during the period under review.

While X now faces a steep penalty, rival platform TikTok narrowly avoided a fine after offering concessions to improve transparency around its advertising library. Regulators confirmed that investigations into both platforms will continue, particularly around illegal content circulation and the systems used to detect harmful posts.

The decision sparked political reactions even before it was announced. U.S. Vice President JD Vance criticised Brussels, alleging the EU was punishing X for refusing to engage in “censorship.” European officials dismissed the claim, saying the DSA is not aimed at policing political speech but ensuring platforms operate responsibly within the bloc.

Other major platforms are also under scrutiny. Meta, TikTok, and Chinese marketplace Temu face separate charges over transparency failures and the sale of illegal products. As Europe tightens oversight of digital ecosystems, regulators indicated that future decisions will be delivered faster than the two years it took for the X investigation.

For now, the latest penalty sets a new benchmark in the EU’s digital crackdown—one that signals Big Tech’s era of light regulation in Europe is firmly over.