EU Slaps X with €120 Million Fine: A Warning Shot for Digital Platforms

Brussels just dropped the hammer. The European Union has levied a staggering €120 million penalty against X for what regulators call a blatant violation of online transparency rules. This isn't a slap on the wrist—it's a statement.

The Core of the Crackdown

Forget vague guidelines. The fine targets specific, systemic failures in how the platform discloses its operations to users and authorities. The EU's digital rulebook isn't just for show, and this enforcement proves they're willing to back it with serious financial muscle. It's a clear signal to every major tech player operating in the bloc: play by the new rules, or pay up.

Ripple Effects Beyond the Fine

While the immediate hit is financial, the long-term cost could be far higher. Regulatory scrutiny is now a permanent fixture. Compliance isn't an IT project anymore—it's a core business function with a nine-figure price tag for getting it wrong. For an industry built on moving fast, the new imperative is moving carefully.

The New Cost of Doing Digital Business

This penalty recalibrates the risk-reward equation for platform giants. The old playbook of seeking forgiveness over permission just got a lot more expensive. It forces a fundamental question: can the 'disruptive' business models of the last decade survive under the microscope of the next?

The era of the digital wild west is closing. Regulators are no longer just watching; they're auditing, and they're bringing the receipts. For the finance bros who think regulation is just noise? Try telling that to the accountant looking at a €120 million line item. That's not market volatility—that's policy, hitting the P&L where it hurts.

EU says that DSA has nothing to do with censorship

The bloc’s tech regulator claims that users could be duped into thinking the identity of those with blue tick marks was verified, when in fact anybody can pay for a blue tick. It said it had found evidence of malicious actors abusing the system.

On the other hand, the billionaire, who bought the platform for $44 billion in 2022, said the DSA rules amounted to censored speech, which he said he found unacceptable.

In response to Musk’s charge of censorship, the commission said that its rules were aimed at ensuring “a SAFE and fair online environment for European citizens that is respectful of their rights, in particular freedom of expression”.

Among its rules, it said, are requirements that companies inform users when their accounts are restricted and that users who are banned can contest those decisions.

Additionally, the Commission said its review of X had found a lack of transparency around advertising and that X did not provide data for research use as required under EU rules. “In particular, X prohibits eligible researchers from independently accessing its public data, such as by scraping, as stated in its terms of service”, the Commission stated.

The European Commission’s tech chief, Henna Virkkunen, said X’s fine was proportionate and calculated based on the nature of the infringements, their gravity in terms of the affected EU users, and their duration. 

Under the DSA, which took effect two years ago, the bloc can impose fines of up to 6% of online platforms’ yearly global revenue for failing to tackle illegal content and disinformation, or for not following transparency rules.

“We are not here to impose the highest fines. We are here to make sure that our digital legislation is enforced, and if you comply with our rules, you don’t get a fine. And it’s as simple as that,” she stated, “I think it’s very important to underline that DSA is having nothing to do with censorship.” 

The penalty aligns with the EU’s ongoing enforcement against big tech, including prior fines on Meta and Apple. This is pressuring X to potentially overhaul its premium subscription model amid low initial post engagement of 16 likes.

JD Vance asks the EU to support free speech

Besides X, the EU’s investigation has extended to other US companies. Earlier this year, the EU fined Apple and Meta a combined 700 million euros for breaching the bloc’s landmark Digital Markets Act (DMA).

As reported by Cryptopolitan, Apple was hit with a € 500 million ($570 million) penalty for restricting how app developers communicate with users about alternative sales and offers. Meta, on the other hand, was fined € 200 million (approximately $230 million) for its controversial “pay or consent” model. It forces users in the EU to either pay for ad-free access to Facebook and Instagram or consent to targeted advertising.

Europe’s crackdown on big tech has been interpreted as a way to ensure smaller rivals can compete, and consumers have more choice. This has been criticised by the administration of US President Donald Trump, which says it singles out American companies and censors Americans. 

Before the announcement of the fine, the US Vice President JD Vance said, “The EU should be supporting free speech, not attacking American companies over garbage.”

However, the EU’s executive said that its laws do not target any nationality and that it is merely defending its digital and democratic standards, which usually serve as the benchmark for the rest of the world. 

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