The European Commission imposed a fine of 120 million euros on X, the platform formerly known as Twitter and now owned by Elon Musk.
This is the first sanction of its kind imposed under the new Digital Services Act (DSA), the European Union’s flagship regulation for online content moderation.
The decision, announced on Friday, December 5, 2025, risks exacerbating the already delicate relations between Brussels and Washington, with the United States immediately criticizing the move as an attack on American companies.
The Reasons for the Fine: Transparency and Deceptive Design
According to the European Commission, X has been found guilty of violating the transparency obligations set for large online platforms by the DSA. Specifically, three aspects were contested:
- The design of the blue checkmark of X, which was transformed from a user verification symbol into a paid feature, has been deemed misleading.
- The advertising library of X was found lacking in terms of transparency.
- The platform did not provide researchers with access to public data, as required by European regulations.
These elements have led the Commission to conclude a part of the investigation initiated almost two years ago, the first ever under the new law. However, other lines of inquiry remain open, including those related to X’s efforts to counter the spread of illegal content and information manipulation.
The United States’ Response: Accusations of Censorship and Threats of Tariffs
The reaction from the United States was swift. American Vice President JD Vance harshly criticized the European decision, calling the fine a punishment for “not practicing censorship.” Vance wrote on X that “the EU should support freedom of expression, not attack American companies over nonsense,” receiving praise from Elon Musk himself.
U.S. authorities have repeatedly expressed concern about the DSA, accusing Brussels of wanting to limit freedom of expression and threatening possible trade tariffs in response to what is perceived as discrimination against American companies.
The European Union’s Stance: “It’s Not Censorship, It’s Transparency”
From the European side, the response was clear. Henna Virkkunen, Executive Vice President of the European Commission for Technological Sovereignty, emphasized that the DSA is not about censorship, but about transparency and user protection. “We are not here to impose the highest fines, we are here to ensure that our digital legislation is enforced. If you comply with our rules, you will not receive a fine,” Virkkunen stated to journalists.
Even the Commission’s spokesperson, Paula Pinho, reiterated that “on this subject, we have agreed to disagree with the way some people in the United States view our legislation. It is not about censorship, and we have repeated this several times.”
The Calculation of the Penalty: Proportionality and Impact on Users
The fine of 120 million euros represents a significant amount, although it is lower compared to other tech sanctions imposed by Brussels in the past. According to the DSA, companies can be fined up to 6% of their global annual revenue. In the case of X, global revenues are estimated in a few billion, while Musk’s group of companies has much higher revenues.
Virkkunen explained that the magnitude of the fine was assessed as “proportionate,” taking into account the nature of the violations, their severity in terms of European users involved, and the duration of the infractions. A senior Commission official clarified that the calculation cannot be reduced to a simple economic formula, but must consider various qualitative factors.
The Comparison with TikTok: Double Standards?
The decision on X was announced simultaneously with the conclusion of a similar investigation on TikTok. In this case, the Commission chose not to impose any fines, as the company committed to modifying the design of its service to comply with European regulations. TikTok’s spokesperson, Paolo Ganino, stated that the platform takes its obligations very seriously and expects the DSA standards to be applied fairly and consistently across all platforms.
Internal Pressures and Future Prospects
The European Commission is under increasing pressure from political leaders, parliamentarians, and digital rights groups to swiftly conclude the investigation into X and demonstrate its ability to protect citizens online. The fine represents a strong signal, but the proceedings against Musk’s platform are far from over: the responsibilities of X in combating disinformation and illegal content remain to be clarified.
Awaiting further developments, the situation highlights the delicate balance between freedom of expression, digital regulation, and transatlantic relations. The sanction against X could represent just the first chapter in a long series of confrontations between Brussels and major American tech companies.
Conclusions: A New Era for Digital Regulation
The fine imposed on X marks a turning point in the enforcement of the Digital Services Act and confirms the European Union’s determination to uphold its rules in the digital world. At the same time, the incident highlights the deep divergences between Europe and the United States regarding the management of online platforms and the protection of user rights.
While X has not yet released official statements, the debate on the legitimacy and effectiveness of the DSA is set to continue, with potential repercussions not only for the companies involved but for the entire global digital ecosystem.
Source: https://en.cryptonomist.ch/2025/12/29/eu-fines-elon-musks-x-120-million-euros-for-lack-of-transparency/
