EU hits Elon Musk’s X with $140 million fine over business practices : NPR

The European Union announced a $140 million fine against Elon Musk's X, the social network formerly known as Twitter, for several violations of rules governing large digital platforms. A European Commission spokesman said the fine against holding company X was due to misleading use of the blue tick platform to identify verified users, poorly functioning ad storage, and failure to provide efficient access to data for researchers.

Europe would prefer not to fine X, spokesman Thomas Regnier said, as he drew a contrast with Chinese platform TikTok. Regnier announced Friday that TikTok has separately offered concessions that would allow it to avoid such fines.

“If you engage constructively with the Commission, we will resolve matters,” Renier told a news conference in Brussels. “If you don't, we will take action.”

The possibility that X would face financial sanctions in Europe has drawn significant political criticism not only from Musk, but also from others in Washington, D.C., over the past two years, since the European Commission started his investigation.

“There are rumors that the EU Commission will fine X hundreds of millions of dollars for refusing to censor,” Vice President Vance. wrote on X Thursday. “The EU should support free speech, not attack American companies over trash.”

In July 2024 in set of preliminary conclusionsThe European Commission has formally accused X, which serves more than 100 million users in the EU, of several violations. These include failing to comply with transparency requirements, preventing researchers from accessing data, and misleading users by converting the blue confirmation badge into a paid subscription feature.

Musk has long been declared his intention to challenge in court any EU sanctions, rather than making concessions to complete the investigation.

However, the company could face much higher financial penalties as European authorities could under new legislation known as Digital Services Act — fine violators 6% of their global annual revenue, which in this case could include several of Musk's other companies, including SpaceX.

The announcement of the fine follows months accusations Activists and trade experts say authorities in Brussels are deliberately easing measures to appease Trump. Musk has been a prominent supporter of the Trump campaign and spent several months last spring as an administration adviser and the public face of the Department's Government Efficiency Initiative.

The willingness to challenge Musk's business empire could serve as a critical test of the EU's resolve, especially in light of President Trump's previous threats to impose tariffs over the bloc's fines against US tech giants.

The confrontation underscores a growing rift over the concept of digital sovereignty that has turned longtime allies into rivals as Europe seeks to establish itself as a global digital regulator and the Trump administration resists proposed restrictions on US companies' profits and freedom of expression.

So, experts warn, this direct punitive action against Musk's business carries the risk of US retaliation, even as the EU remains heavily dependent on US technology in a number of sectors.

The United States is already using some of these free speech concerns as grounds for denial of US visas to certain persons.

The Trump administration has also consistently argued that the EU unfairly targets U.S. tech companies with harsh financial sanctions and onerous regulations, equating those measures with tariffs that justify trade retaliation. Just last week, US Commerce Secretary Howard Lutnick said the EU must overhaul its digital rules to reach a deal aimed at lowering tariffs on steel and aluminum.

On Friday, the Commission again denied any connection between trade negotiations with the US and the implementation of the technology rulebook, any attacks on US firms or any violations of freedom of expression.

“Our digital legislation has nothing to do with censorship,” said Rainier Commission spokesman. “We make the final decision by not targeting anyone, not targeting any company, not targeting any jurisdiction based on their skin color or country of origin.”

Despite pressure from the Trump administration, the EU has moved to enforce its digital antitrust rules. fines have recently been introduced of Apple Inc.'s $584 million. and $233 million from Meta Platforms Inc.

It also imposed significant fines on other corporations, including fines totaling more than $8 billion against Alphabet Inc.'s Google over several years, as well as a separate directive for Apple will pay 13 billion euros in the form of tax arrears to Ireland for providing unfair state aid.

Others are potentially more serious concerns about managing X illegal contentelection-related disinformation and using community notes have not yet entered the preliminary stage of a separate European Commission investigation.