Stay connected with BizTech Community—follow us on Instagram and Facebook for the latest news and reviews delivered straight to you.
The European Commission has imposed a €140 million ($147 million) fine on Elon Musk’s social media platform X for failing to comply with the bloc’s Digital Services Act (DSA), marking the latest escalation in the EU’s regulatory crackdown on Big Tech. The penalty, announced on Friday, stems from X’s inadequate handling of illegal content and disinformation, including delays in reporting child sexual abuse material and insufficient risk assessments ahead of the 2024 European Parliament elections.
The DSA, which took full effect last year, requires platforms with more than 45 million EU users—such as X—to swiftly remove harmful content and conduct annual audits. The Commission found X breached these obligations on multiple fronts, including its “blue tick” verification system, which regulators said allowed bad actors to amplify misleading information. X, formerly Twitter, has 100 million users in Europe and faces ongoing scrutiny over its content moderation practices under Musk’s ownership.
In a related development, short-video app TikTok settled similar DSA violations by committing to enhanced safeguards, avoiding a fine for now. The Chinese-owned platform, with 150 million EU users, agreed to bolster age verification and data protection measures, particularly for minors. EU tech enforcer Thierry Breton described the outcomes as “a clear message: No platform is above the law.”
Regulatory Context and Platform Responses
The fines form part of a broader EU offensive against US tech giants. Just this week, Alphabet’s Google was hit with a €2 billion antitrust penalty for favouring its own search services, while Meta faces probes into its “pay or consent” advertising model. The DSA empowers the Commission to levy penalties up to 6% of a company’s global revenue—potentially billions for X, whose 2024 earnings topped $5 billion.
X spokesperson Gina Lutnick rejected the findings, calling them “politically motivated” and vowing an appeal to the European Court of Justice. “We have invested heavily in safety tools, removing millions of posts last year alone,” Lutnick said in a statement. The platform has previously clashed with EU officials, including over Musk’s amplification of far-right narratives during elections.
TikTok, meanwhile, welcomed the settlement, pledging €1.2 billion in compliance investments over a three-year period. CEO Shou Zi Chew, testifying before US Congress earlier this year on data security, emphasised the company’s “commitment to European values.”
Broader Implications
The rulings highlight Europe’s push for digital sovereignty amid transatlantic tensions. US President-elect Donald Trump has criticised the EU’s approach as “extortion,” threatening retaliatory tariffs. Economists warn that the fines could stifle innovation, as the tech sector contributes 10% to EU GDP.
Read also this: Cisco Acquires EzDubs to Supercharge Real-Time AI Translation
Global markets reacted mildly: X shares dipped 1.2% in after-hours trading, while TikTok parent ByteDance saw no immediate movement. As the DSA probes continue—Apple and Amazon next in line—these cases test the balance between free speech and safety in an era of algorithmic amplification. For platforms, compliance is no longer optional; for regulators, enforcement remains a high-wire act.
