Elon Musk’s X fined $140M for breach of contract Under Landmark EU Tech Law

Elon Musk’s X fined $140M for breach of contract Under Landmark EU Tech Law. The European Union has delivered a landmark ruling against Elon Musk’s X, imposing a staggering fine of €120 million (approximately $140 million USD). Announced on Friday, December 5, 2025, the penalty marks the first significant content-related fine issued under the bloc’s powerful Digital Services Act (DSA), establishing a precedent for regulating global technology giants.

Violations of DSA Transparency Rules

The penalty was imposed after a high-profile probe by the European Commission found X guilty of multiple counts of non-compliance with transparency rules. This violation is framed by the EU as a breach of the digital obligations set out in the DSA, which mandates that Very Large Online Platforms (VLOPs) operating in the EU must ensure a safe and accountable online environment.

The Commission highlighted several key areas of failure:

• The “Deceptive Design” of the Blue Checkmark: Following the platform’s change in ownership and the subsequent overhaul of the verification system, the EU found that X was no longer “meaningfully verifying who is behind the account.” The new system, where users could pay to obtain a “verified” badge, was deemed a “deceptive design” that exposed users to significant risks, including impersonation frauds, scams, and manipulation by malicious actors.
• Lack of Advertising Transparency: X failed to provide sufficient transparency regarding its advertising practices, a core requirement under the DSA designed to give users insight into how and why they are targeted with ads.
• Data Access for Researchers: The platform was also found to be non-compliant in providing researchers with access to public data, thereby hindering independent scrutiny of content trends and platform risk.

Global Regulatory Test and Political Friction

This fine is viewed globally as a crucial test of the EU’s resolve to enforce its digital regulations against Big Tech. The DSA empowers the EU to fine companies up to six percent of their global annual revenue for serious non-compliance, making the potential financial stakes enormous.

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The ruling was met with immediate political pushback from across the Atlantic, underscoring the friction between the EU’s regulatory focus and the US position on digital governance. Ahead of the announcement, members of the US administration had pre-emptively warned the EU against “attacking” American firms or engaging in “censorship,” an allegation that the EU’s technology commissioner firmly rejected, stating the decision was strictly “about the transparency of X” and not content censorship.

Ongoing Scrutiny and Industry Commitments

While the fine is considered proportionate to the specified breaches, it is not the end of the regulatory scrutiny for X. The platform remains under a separate, broader DSA investigation regarding its efforts to combat the spread of illegal content and large-scale information manipulation on its service.

The announcement of the X fine coincided with news that the Commission had accepted commitments from rival platform TikTok to address concerns related to its advertising system under the DSA framework. This simultaneous action demonstrates the EU’s commitment to enforcing its digital standards across all major technology platforms operating within the European market. For more information, I recommend Songbux.