The European Union has imposed a whopping $140 million fine on Elon Musk’s social media platform X for breaking the transparency rules (Digital Services Act, DSA).
The feud between Musk and the EU has been going on for some time now. Musk has constantly criticised the bloc’s move to impose restrictions on American companies so that they won't be able to establish a strong foothold in the bloc.
EU Commission Vice-President Henna Virkkunen said, “Musk’s company has violated rules by deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers.”
US Vice President JD Vance has sharply criticised the move, saying, "The EU should be supporting free speech, not attacking American companies over garbage."
Virkkunen responded by saying the ruling had "nothing to do with censorship", adding, "If you comply with our rules, you don't get a fine. It's as simple as that."
The US administration did not like the imposition of a fine on Musk’s social media platform, accusing the EU of violating the norms of the free market approach.
Brussels alleges the platform uses the white and blue checkmarks for paid users, which gives away a false impression that these are authentic and verified.
Under the DSA, fines can go up to 6 per cent of the company’s total annual revenue; however, officials said that X’s annual profits played no direct role in the fine.
As per EU legislation, the penalty imposed on X consists of three parts: €45 million for violations found in the blue and white checkmarks, another €35 million for restricting advertisers' access to the platform, and €40 million for intentionally denying access to its databases to researchers.
“We are not here to impose fines, but to make sure our digital legislation is strictly enforced,” said Virkkunen.
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