EU Fines Musk’s X Platform $140 Million for Alleged Hate Speech and Misinformation Violations

The European Commission has imposed a €129 million ($140 million) fine on Elon Musk’s social media platform X for violating the European Union’s Digital Services Act (DSA), marking a significant regulatory action against the American tech company.

The Commission found that X failed to comply with the DSA, a comprehensive 2022 law requiring internet companies to aggressively combat hate speech and misinformation across the EU’s 27 member states. The legislation represents one of the most ambitious global attempts to regulate online content by mandating that platforms implement robust policies to remove illegal material.

Henna Virkkunen, the European Commission’s tech chief, defended the fine as “proportionate” and emphasized that it was calculated based on the nature, gravity, and duration of the violations. “It’s very important to underline that DSA is having nothing to do with censorship,” Virkkunen told reporters.

The penalty comes after regulators opened proceedings against X in late 2023, investigating the platform for suspected failure to combat content disinformation and manipulation. Notably, X became the first company to face such an investigation under the new digital rulebook. The initial probe focused on several issues, including alleged dissemination of illegal content related to Hamas’ attacks against Israel and concerns about “deceptive design” in X’s verification system for paying users.

The fine has sparked a swift backlash from American officials. Vice President JD Vance condemned the action even before its official announcement, writing on X: “Rumors swirling that the E.U. commission will fine X hundreds of millions of dollars for not engaging in censorship. The EU should be supporting free speech not attacking American companies over garbage.”

Similarly, Federal Communications Commission Chair Brendan Carr criticized the decision, stating, “Once again, Europe is fining a successful U.S. tech company for being a successful U.S. tech company. Europe is taxing Americans to subsidize a continent held back by Europe’s own suffocating regulations.”

Musk, who did not immediately respond to requests for comment, shared a post advocating for the passage of a U.S. bill called the GRANITE Act, which would allow companies and individuals to sue foreign entities in American courts over claims of foreign censorship. The bill has been filed in several state legislatures but has not yet been formally introduced at the federal level.

The European Commission has maintained that its laws do not target any specific nationality and that it is defending European digital and democratic standards. Virkkunen noted that future decisions on DSA violations are expected to take less time than the two-year investigation into X.

This regulatory clash occurs against the backdrop of already strained relations between Musk and European leaders. In January, leaders from four European countries, including France and Germany, publicly denounced Musk’s influence and warned against his involvement in their domestic politics. Critics have pointed to Musk’s support for far-right candidates across Europe and globally, though many of those candidates have failed to gain power.

X has previously signaled its readiness to fight the Commission’s findings. In April, following rumors of an impending penalty, the company stated: “If the reports that the European Commission is considering enforcement actions against X are accurate, it represents an unprecedented act of political censorship and an attack on free speech.” The company added that it had “gone above and beyond to comply” with the DSA and would “use every option at our disposal” to defend itself.

The platform can still appeal the decision in European courts, potentially setting the stage for a prolonged legal battle that could test the limits and enforcement of the EU’s digital regulations.