Brussels/Washington. The European Commission has issued its first major fine under the Digital Services Act (DSA) against a large online platform. The US platform X (formerly Twitter), owned by Elon Musk, has been ordered to pay a penalty of €120 million for three breaches of transparency obligations. The decision immediately sparked fierce criticism from Washington, with some calling it an “attack on America” and a “threat to free speech.”
Fine Cites Lack of Transparency
The European Commission’s penalty, which combines three separate fines, formally targets transparency flaws rather than a failure to remove clearly illegal content:
- Misleading Blue Checkmarks (approx. €45M): The Commission argues that issuing blue checkmarks for payment, rather than rigorous identity verification, is misleading and increases the risk of disinformation and manipulation by making account authenticity unclear.
- Inadequate Data Access for Researchers (approx. €40M): X was found to have restricted the legally required, cost-effective access to its API (application programming interface) for qualified researchers and supervisory bodies.
- Deficient Ad Archive Transparency (approx. €35M): The platform’s archive for ads, particularly political advertising, was deemed incomplete and difficult to access, hindering oversight (Art. 39 DSA).
US Condemns Move as Political Overreach
The fine, which is close to the maximum allowed under the DSA for these types of infractions, was immediately interpreted in the US as politically motivated:
- Senator Marco Rubio (Republican) labeled the multi-million euro penalty an “attack on America.”
- US Vice President J.D. Vance (Republican) stated the EU should support free speech instead of attacking American companies “over garbage,” implying X was being punished for its perceived lack of censorship.
EU Rejects Censorship Accusations
The European Commission, through Digital Commissioner Henna Virkkunen, firmly rejected the accusation of censorship. She emphasized that the DSA is not about restricting opinions, but about enforcing European values of transparency and accountability on global tech giants that shape public discourse.
The ruling is seen as a precedent-setting step for all VLOPs (Very Large Online Platforms), signaling that the EU will use its financial leverage to force platforms to align their moderation and transparency systems with European regulations.
X has 90 days to address the cited deficiencies but faces continued scrutiny. A separate, ongoing DSA procedure focusing on X’s alleged failure to adequately combat illegal content and disinformation continues. The platform retains the right to appeal the fine before the European Court of Justice (ECJ).