Elon Musk’s X Hit With $140 Million Fine Over Alleged User Deception

The European Union has levied a €120 million ($140 million) fine against X, the social media platform formerly known as Twitter, marking the first major enforcement action under the bloc’s new Digital Services Act. The penalty has triggered a flurry of angry responses from X owner Elon Musk, who took to his platform to criticize the EU.

The fine represents a significant milestone in digital regulation, as it’s the first imposed under the EU’s landmark Digital Services Act, legislation designed to ensure user safety and transparency on digital platforms operating in Europe.

According to EU officials, X violated the law on three specific counts: implementing a misleading verification system that enabled scammers, failing to provide required data to researchers, and concealing the identities of those paying for advertisements on the platform.

Henna Virkkunen, the EU’s executive vice-president for tech sovereignty, security, and democracy, outlined the rationale behind the decision in a December 4 statement. “Deceiving users with blue checkmarks, obscuring information on ads, and shutting out researchers have no place online in the EU,” Virkkunen said. “With the DSA’s first non-compliance decision, we are holding X responsible for undermining users’ rights and evading accountability.”

The problems at X can be traced back to Musk’s controversial $44 billion acquisition of Twitter in 2022. The takeover was fraught with concerns from the start, with dozens of groups raising objections before the sale was completed. Experts warned that Musk’s approach could amplify extremist content and disinformation.

One of Musk’s first and most contentious changes was dismantling Twitter’s established “blue check” verification system, which had previously helped users identify authentic accounts of public figures and organizations. He replaced it with a subscription service available to anyone willing to pay, removing the rigorous verification process that had protected users from impersonation and scams.

This decision created immediate problems, allowing bad actors to purchase verification badges and impersonate corporations, celebrities, and government officials—precisely the scenario that EU regulators cited in their ruling.

The fine comes amid growing global concern about disinformation and its real-world consequences. The non-partisan Brookings Institution recently found that disinformation played a pivotal role in the lead-up to the 2024 U.S. general election. Meanwhile, earlier this year, Facebook ended its fact-checking partnerships, further weakening safeguards against false information.

Musk’s response to the fine has been characteristically combative. On December 6, he posted tweets calling for the abolition of the European Union. According to Politico Pro, he has also vowed to target the individuals involved in the decision.

The timing of the fine has raised questions about potential geopolitical tensions. On the same day the fine was announced, NPR reported that the U.S. State Department had ordered staff to reject visa applications from individuals who worked on fact-checking or content moderation activities that it claimed infringed upon Americans’ free speech rights.

While Musk’s defenders have framed the EU’s action as an attack on free expression, European anti-extremism advocates like Josephine Ballon of HateAid believe the penalties don’t go far enough. “The EU must keep at it and not bow to geopolitical pressure from the U.S.,” Ballon stated.

This fine represents just the opening salvo in what promises to be an ongoing struggle between powerful tech platforms and regulatory authorities. As artificial intelligence tools become more sophisticated and accessible, concerns about their potential to exacerbate misinformation have grown, creating even greater urgency for effective oversight.

For X, which has faced declining advertising revenue since Musk’s takeover, the €120 million penalty adds another financial burden to an already challenging business environment. More importantly, it signals that even the world’s wealthiest individuals and their platforms aren’t beyond the reach of regulatory frameworks designed to protect digital citizens.