In a first-of-its-kind escalation under new digital legislation, the European Union €120 million fine on the social media platform X (formerly Twitter), owned by American billionaire Elon Musk. This decision marks a turning point in the relationship between Brussels and Silicon Valley tech giants, signaling a new era of stricter regulation.
This penalty is significant because it represents the first practical application of the Digital Services Act (DSA), which the European Union adopted two years ago. This pivotal law aims to regulate the digital space, combat illegal content, and ensure the transparency of the algorithms used by major platforms. The fine was imposed for what the European Commission described as a violation of transparency rules, not because of the nature of the published content—a subtle distinction that European officials were keen to clarify.
Transparency vs. Censorship: A Political and Technical Debate
The European Commission was quick to deny any political or censorship motives behind the decision. In a press statement, Hina Virkkonen , the EU's technology commissioner, emphasized that the fine was solely related to the platform's transparency mechanisms. Responding to criticism, Virkkonen stated, "This decision concerns X's transparency and has nothing to do with censorship. If you comply with our rules, we won't fine you; it's that simple."
This clarification comes as a direct response to previous accusations made by Jay D. Vance , the US Vice President, who considered that European moves could infringe on freedom of expression, indicating the possibility of a renewed diplomatic confrontation between Brussels and Washington, especially with the presence of US President Donald Trump , who has a close relationship with Elon Musk.
Background of the Digital Services Act (DSA)
To understand the context of this fine, one must go back to 2022 when the European Union passed the Digital Services Act, an ambitious legislative package imposing strict obligations on major digital platforms (those with more than 45 million monthly active users in the EU). These obligations include submitting regular systemic risk reports, providing data to researchers, and ensuring transparency in advertising. X is one of the platforms classified as a "very large online platform" (VLOP), making it subject to the highest level of scrutiny.
Expected impacts locally and globally
The repercussions of this decision extend beyond the financial impact on the "X" platform. It sets a legal precedent that other tech companies, such as Meta (Facebook and Instagram), TikTok, and Google, will take into account. The European Union is sending a clear message: digital laws in Europe are not merely symbolic, and the Commission is prepared to use its powers to impose fines that could theoretically reach 6% of a company's total annual global revenue in cases of repeated serious violations.
On the geopolitical front, this decision could lead to transatlantic trade tensions, as some circles in the United States view these European laws as protectionist or restrictive to American innovation, while Europe insists they are necessary to protect democracy and the safety of users in the digital age.
