Key highlights:
- The EU issued its first Digital Services Act fine against X, triggering a sharp political response from the United States.
- US officials accuse Europe of using digital regulations as censorship and as a trade barrier against American tech companies.
- X retaliated by blocking the European Commission’s ad account, escalating tensions between the platform and EU authorities.
The European Commission’s €120 million fine against Elon Musk’s social network X ignited a significant diplomatic reaction from the United States. On December 5, EU regulators enforced the Digital Services Act (DSA) for the first time, accusing the platform of violating rules designed to combat disinformation.
Today, we fined X for non-compliance with transparency obligations under the DSA.
We’re holding X accountable for:
🔹Deceptive design of its ‘blue checkmark’
🔹Lack of transparency of its advertising repository
🔹Failure to provide access to public data for researchers↓
— European Commission (@EU_Commission) December 5, 2025
US officials quickly denounced the decision. Secretary of State Marco Rubio called the fine “an attack on American tech,” arguing that the penalty threatens not only X but all US digital platforms. He warned that foreign governments were increasingly using regulatory tools to pressure American companies.
Vice President JD Vance reinforced the criticism, stating that Europe should focus on protecting free expression rather than issuing punitive measures. US leaders broadly view the EU’s tightening regulatory posture as a form of non-tariff trade restriction aimed at limiting American influence in global tech markets.
What the EU says X did wrong
European regulators focused on X’s revamped “blue tick” verification system, arguing it misleads users about the authenticity of content. Because paid verification allows users to obtain a checkmark without a strict identity process, regulators say the system increases the risk of misinformation.
The European Commission also cited insufficient transparency in X’s advertising archive and restricted access to public platform data for researchers. Officials stated that these issues violate DSA requirements for data access and content accountability.
Musk’s countermove and rising geopolitical tensions
Elon Musk reacted sharply, calling for the dissolution of the European Union and arguing that individual nations should reclaim sovereignty. On December 7, X blocked the European Commission’s advertising account, framing the move as enforcement of its own platform rules.
The EU should be abolished and sovereignty returned to individual countries, so that governments can better represent their people
— Elon Musk (@elonmusk) December 6, 2025
Nikita Beer, Head of Product at X, stated that the Commission had used its dormant advertising account to exploit a vulnerability in X’s Ad Composer tool. According to Beer, this violated the platform’s policies and misled users by making a link appear as a video. He argued that X applies rules uniformly and accused the EU of exempting itself from standards imposed on others.
X has previously described the DSA as politically motivated censorship, further intensifying the feud.
The broader battle over digital governance
The dispute reflects a growing power struggle between American tech giants and European regulators. The US sees Europe’s digital policies as restrictive measures that hinder American innovation. Europe counters that strict transparency and safety rules are essential to combat disinformation and protect citizens.
The €120 million fine is the first major application of the Digital Services Act and could shape future interactions between platforms and EU institutions. While the amount is manageable for Musk’s company, the precedent signals a more aggressive regulatory era and a possible escalation in transatlantic digital policy tensions.
Source:: X Blocks the European Commission’s Account After Receiving a €120 Million Fine