EU Imposes Fine on X for Digital Services Act Violations as Musk Criticizes Regulatory Measures

The European Commission has imposed a financial penalty of 120 million euros on the social media platform X, formerly known as Twitter, after concluding a two-year investigation. The Commission determined that X breached three key provisions of the Digital Services Act (DSA), a regulatory framework designed to enhance accountability and transparency among digital platforms operating within the European Union.

The violations pertain to transparency obligations, user protection standards, and the provision of accessible data archives for researchers. While the fine is considered moderate in relation to the size and influence of X, the Commission has instructed the company to address and resolve the identified shortcomings promptly.

In response to the announcement, X's owner, Elon Musk, used the platform to express strong criticism of the EU's regulatory actions, labeling them as restrictive and bureaucratic. His remarks received support from various international political figures, including some with far-right affiliations. Notably, X remains officially restricted in Russia, a fact that did not factor into Musk's public commentary.

Following the penalty, X took action against the European Commission by suspending its advertising account on the platform. According to statements from X, the suspension was due to the alleged exploitation of a system vulnerability related to ad creation. The Commission's main account, however, remains active on X, and officials have indicated that the advertising suspension is unlikely to impact their broader communication strategy.

The response from the United States has also been critical. Senior American officials, including the Secretary of State, have described the EU's enforcement of the DSA as an attack on American technology companies and, by extension, the American public. These critiques have not addressed the regulatory environment in Russia, where multiple US-based platforms, including X, Facebook, and Instagram, face restrictions or outright bans.

The EU has maintained that the enforcement of the DSA is not politically motivated, emphasizing that the legal process was transparent and based on clearly documented evidence. Despite this, the issue has become entangled in broader transatlantic discussions regarding digital regulation and trade. Recent US administrations have accused the EU of using digital laws to target Silicon Valley firms and limit online freedom of expression, with ongoing trade negotiations sometimes referencing potential adjustments to the DSA and related regulations.

The European Commission continues to balance the enforcement of its digital policies with the aim of maintaining constructive relations with the US. Officials have reiterated that legislative frameworks such as the DSA, the Digital Markets Act (DMA), and the forthcoming AI Act are essential for fair competition and user protection, and are not intended as leverage in trade disputes.

X remains under additional scrutiny, with further investigations underway concerning its content recommendation systems and the potential amplification of politically extreme voices. Studies have indicated increased visibility for far-right content on the platform since Musk's acquisition. The Commission has set deadlines for X to comply with specific DSA requirements, such as modifying verification systems and improving advertising transparency. Non-compliance could result in further fines or even a full suspension of the platform within EU member states.

This case marks the first instance of a major penalty issued under the DSA, highlighting the EU's commitment to regulating large technology platforms and ensuring their adherence to European standards. The ongoing developments illustrate the complex intersection of platform governance, international relations, and the evolving landscape of digital regulation.