Elon Musk has ignited a transatlantic political fight after the European Union fined X £105 million ($140 million) for alleged violations of the Digital Services Act, prompting the billionaire to denounce the ruling as "bulls---" and call for the EU to be abolished. The escalating confrontation has drawn in senior U.S. officials, raised questions about global tech regulation, and triggered retaliatory action from X against an official EU advertising account.
The European Commission imposed the fine following a two-year investigation that concluded X failed core obligations governing transparency, advertising disclosures, and platform design. Regulators said the platform's blue checkmark feature was misleading, researchers lacked proper access to public data, and ad transparency did not meet DSA standards. Henna Virkkunen, Executive Vice President for Tech Sovereignty, Security and Democracy, said the enforcement held X accountable for "undermining user rights and evading accountability."
Musk rejected the findings within minutes on X. He wrote that the Commission's action was "bulls---" and accused Brussels of weaponizing a "deceptive" rule to punish the company. His comments accelerated overnight, culminating in a demand that the European Union be dismantled altogether. Musk argued sovereignty should "return to individual countries," insisting EU regulators "overreached" and interfered with democratic processes.
The penalty arrives as Brussels ramps up enforcement of its sweeping Digital Services Act, the first major test of whether the bloc can regulate foreign tech giants at scale. X must now deliver a remediation plan within 60 days and provide transparency updates within 90 days or face further sanctions.
The clash quickly broadened into a diplomatic dispute. U.S. Secretary of State Marco Rubio denounced the EU ruling, calling it "an attack on American platforms and the American people." Rubio added that "the days of censoring Americans online were over," a statement Musk reposted and endorsed. U.S. Ambassador to the EU Andrew Puzder went further, arguing the penalty reflected "regulatory overreach" targeting American innovation. FCC Chair Brendan Carr criticized Europe for "taxing Americans to subsidize a continent held back by regulation," while Vice President JD Vance asserted the EU punished X "for not engaging in censorship."
Amid the political uproar, X took direct action against the European Commission by disabling its advertising account. Nikita Bier, X's Head of Product, said the Commission exploited "a dormant ad account to exploit the platform's Ad Composer." Bier claimed the EU posted a link disguised as a video to artificially inflate reach, adding that the exploit "had never been abused like that before." X said the loophole was later patched.
