EU Slaps X with $140M Fine, Musk Calls It 'Crazy' & 'Insane'
EU fines X $140M, Elon Musk calls penalty 'insane'

Elon Musk has launched a fierce attack on the European Union after regulators hit his social media platform X with a hefty fine of $140 million. The billionaire owner labelled the penalty "crazy" and "insane" in a fiery post on the site over the weekend.

Musk's Personal Grievance and Free Speech Defence

Expressing his outrage, Musk revealed that the fine was imposed not only on the company but also on him personally, which he found even more shocking. "The EU imposed this crazy fine not just on @X, but also on me personally, which is even more insane!" he wrote. He suggested that any response should therefore target both the EU as an institution and the specific individuals behind the decision.

Musk has consistently positioned himself as a champion of free speech since acquiring the platform, formerly known as Twitter, in 2022. In a related post, he reiterated this stance, stating, "Freedom of speech is the bedrock of democracy. The only way to know what you are voting for."

The Core of the EU's Case Against X

This landmark fine is the first of its kind under the EU's powerful Digital Services Act (DSA), which came into force to regulate major online platforms. The penalty concludes a two-year investigation, with regulators finding X in violation of three key transparency rules.

The European Commission pinpointed several critical failures:

  • Deceptive Blue Checks: The current verification system, where users pay $8 per month for a blue tick, was condemned as a "deceptive design practice." Officials argued it no longer reliably verifies user identity, confusing people and potentially exposing them to scams. Before Musk's takeover, these badges were primarily for verified public figures.
  • Opaque Advertising: X's database for digital advertisements was found lacking. The DSA mandates clear disclosure of ad sponsors and target audiences, but the platform's system was criticised for built-in limitations, delays, and access barriers that hinder research into scams and influence campaigns.
  • Blocking Researchers: The EU also accused X of creating "unnecessary barriers" for researchers seeking public data to study systemic risks on the platform.

EU executive vice-president Henna Virkkunen stated firmly, "Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU. The DSA protects users."

US Backlash and Accusations of Bias

The ruling has ignited significant criticism from American political figures, who allege the EU is unfairly targeting US tech giants. US Secretary of State Marco Rubio framed the fine as a broad attack, posting on X, "The European Commission’s $140 million fine isn’t just an attack on X, it’s an attack on all American tech platforms and the American people by foreign governments." He declared that the "days of censoring Americans online are over." Musk agreed with this assessment.

Vice President JD Vance also weighed in, pre-emptively claiming the EU sought to punish X "for not engaging in censorship." He added, "The EU should be supporting free speech not attacking American companies over garbage."

EU officials firmly rejected these accusations of bias. Commission spokesperson Thomas Regnier clarified in Brussels, "The Commission is not targeting anyone, not targeting any company, not targeting any jurisdictions based on their colour or their country of origin. Absolutely not. This is based on a process, democratic process."

In a related development on the same day, EU regulators closed a separate DSA investigation into TikTok after the video app agreed to make its advertising database fully transparent.