Elon Musk Calls for EU Abolishment After X Receives €120 Million DSA Fine

The European Commission has imposed a significant fine of €120 million ($140 million) on Elon Musk’s social media company X for “deceptive” practices and lack of transparency under the Digital Services Act (DSA). The ruling has escalated into a high-stakes political dispute, with Musk publicly calling for the dissolution of the European Union.

The EU’s Digital Services Act (DSA) Ruling

The fine, issued on Friday following a two-year investigation, marks the EU’s first major non-compliance decision under the DSA, a landmark regulation adopted in 2022 to regulate online platforms.

The European Commission cited three primary breaches by X:

1. Deceptive Design of the ‘Blue Checkmark’: The ruling found the new verification system to be misleading to users. X must inform the Commission of its plans to address this issue within 60 days.
2. Lack of Transparency in the Advertising Repository: X failed to provide adequate clarity regarding its advertising practices.
3. Failure to Provide Access to Public Data for Researchers: The company did not grant sufficient access to external researchers studying the platform.

Henna Virkkunen, Executive Vice President for Tech Sovereignty, Security, and Democracy, stated: “With the DSA’s first non-compliance decision, we are holding X responsible for undermining users’ rights and evading accountability.” X faces potential periodic penalty payments if it fails to submit plans to resolve the repository and data access issues within 90 days.

Musk, and U.S. Officials React with Opposition

The fine triggered immediate and intense criticism from X’s leadership and top U.S. officials, who framed the regulatory action as an attack on American technology and sovereignty.

• Elon Musk: Following his initial one-word dismissal of the ruling as “Bulls—,” Musk escalated his criticism by calling for a fundamental political change: “The EU should be abolished and sovereignty returned to individual countries, so that governments can better represent their people,” he wrote in a post on X.
• U.S. Government Opposition: Top officials in the Trump Administration publicly condemned the decision:
  • Secretary of State Marco Rubio called the fine an “attack on all American tech platforms and the American people by foreign governments.”
  • U.S. Ambassador to the EU, Andrew Puzder, characterized the fine as “excessive” and resulting from “EU regulatory overreach targeting American innovation.” He added that the U.S. opposes censorship and burdensome regulations that target US companies abroad, insisting the EU must engage in fair, open, and reciprocal trade.

The conflict highlights the growing tension between the European Union’s assertive regulatory framework, which seeks to govern digital platforms operating within its borders, and the resistance from major U.S. tech companies and political figures who view the regulations as protectionist or an infringement on American business interests.

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