Musk Urges Dissolution of European Union After X Faces $140 Million Penalty

Brussels — Elon Musk on Saturday called for the European Union to be dismantled one day after the European Commission imposed a €120 million ($140 million) fine on his social media platform X, citing violations of the Digital Services Act (DSA). The penalty followed a two-year investigation that concluded the company’s paid verification badge misleads users and that its advertising library lacks required transparency.

In a post on X, the billionaire said the bloc “should be abolished and sovereignty returned to individual countries” to allow national governments to “better represent their people.” The statement escalated a brief exchange from the day before, when Musk responded “Bull—” to the Commission’s announcement of the fine.

The Commission’s decision is the first formal non-compliance ruling under the DSA, a law adopted in 2022 to tighten oversight of online platforms operating in the 27-nation union. Authorities determined that X’s blue checkmark, introduced as a subscription feature after Musk acquired the company in late 2022, could lead users to believe verified status is based on public-interest criteria rather than payment. Regulators also said the company does not provide sufficient public data for researchers and maintains an advertising repository that falls short of disclosure obligations.

Timeline for Corrective Measures

Under the decision, X has 60 days to detail how it will address concerns about the paid verification program. A separate 90-day deadline applies to submitting plans for a compliant ads repository and improved access to public data for academic or civil-society researchers. Failure to meet these requirements could trigger additional periodic penalties, the Commission warned.

Commission Executive Vice President Henna Virkkunen, responsible for technology, security and democracy portfolios, said the ruling demonstrates that the DSA carries real consequences for companies that “undermine users’ rights and evade accountability.” The Commission indicated it remains open to dialogue but expects tangible steps toward compliance within the set timeframes.

U.S. Officials Push Back

Musk’s criticism of the EU was mirrored by several senior U.S. government figures. Secretary of State Marco Rubio described the sanction as “an attack on all American tech platforms and the American people by foreign governments.” Andrew Puzder, U.S. ambassador to the EU, called the €120 million figure “excessive” and accused Brussels of regulatory overreach that targets American innovation. He added that the current U.S. administration would challenge foreign measures it views as unfair to domestic companies.

While the Commission maintains that the DSA is applied uniformly to all large platforms accessible in Europe, the dispute highlights broader tension between Washington and Brussels over technology governance. The United States has previously criticized EU data-privacy and antitrust measures, arguing they disproportionately affect American firms.

Financial and Operational Impact

The fine represents a small fraction of X’s estimated annual revenue, but the compliance mandates could require substantial technical and administrative changes. The company has not disclosed how many users in Europe subscribe to the blue checkmark, nor has it released updated figures on its global user base since Musk took the platform private. X.ai, the corporate entity that oversees the service, did not immediately respond to requests for comment.

Although individual EU member states enforce DSA provisions, the Commission can initiate investigations and impose supra-national penalties on platforms with more than 45 million users in the bloc. According to the official Digital Services Act portal, maximum fines can reach up to 6 percent of a company’s worldwide annual turnover for serious or repeated violations.

Imagem: imagem internet 11

Next Steps for X

X must present a detailed roadmap outlining design changes to its verification badge, methods for labeling paid accounts, and procedures to prevent user confusion. The plan is expected to include mechanisms for independent auditing and public reporting. For the advertising repository, regulators require a searchable database that lists all paid political and commercial content, information about targeting parameters, and data on the entities financing each campaign.

On data access, the Commission wants researchers to obtain bulk information that allows systematic study of content moderation, disinformation trends, and platform governance. Current application programming interface (API) tiers restrict such activities or impose prohibitive fees, investigators said.

While Musk has framed the dispute as an issue of national sovereignty and free expression, EU officials argue that the DSA primarily addresses consumer protection and marketplace fairness. The law obliges platforms to mitigate systemic risks, offer clear user interfaces, and cooperate with external audits. Other major services, including Meta’s Facebook and Google’s YouTube, are undergoing separate assessments that could lead to additional enforcement actions.

The confrontation adds to a series of regulatory challenges Musk faces worldwide. U.S. securities regulators continue to scrutinize his statements about Tesla, and several countries have questioned X’s content policies. The latest EU fine marks one of the largest for the company since its rebranding from Twitter, underscoring the heightened oversight Musk’s businesses face in multiple jurisdictions.

For now, the Commission’s deadlines set a clear timetable for X to demonstrate progress. If the company fails to satisfy European authorities, further sanctions could include larger fines or, in extreme cases, service restrictions within the bloc.

Crédito da imagem: Reuters