US–EU Rift Deepens After Brussels Hits X With Major DSA Penalty
A fresh transatlantic dispute has erupted after the European Union issued a landmark penalty against X, prompting furious pushback from Washington and renewed tensions over digital governance. The fine, which totals €120 million (US$140 million), marks the first formal non-compliance ruling under the EU’s Digital Services Act (DSA).
The European Commission confirmed the enforcement action on Friday, describing it as a significant test case for the sweeping regulations aimed at policing harmful content, increasing transparency, and tightening oversight of online platforms operating within the bloc. Brussels said X failed multiple core obligations under the DSA.
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| US–EU Rift Deepens After Brussels Hits X With Major DSA Penalty |
EU regulators cited several violations, including what they called a misleading design of the blue-check subscription system — a feature they argue exposes users to impersonation risks and online scams. The Commission also faulted the platform for inadequate disclosure in its advertising repository and for failing to provide the mandatory data access that researchers rely on to study online trends and content moderation.
The ruling comes as part of a broader escalation in Europe’s regulatory campaign targeting major US tech giants. Over the past several years, the EU has imposed multi-billion-euro penalties across the sector: Google has been sanctioned repeatedly for abuses in search and advertising, Apple has faced actions under both the Digital Markets Act and local antitrust laws, and Meta has been scrutinized for its controversial ‘pay-or-consent’ ad model. These moves have heightened longstanding disagreements between Washington and Brussels over how the digital economy should be governed.
The US government’s reaction was swift. Secretary of State Marco Rubio, posting on X, blasted the fine as more than a dispute with a single company, calling it “an attack on American tech platforms and the American people by foreign governments.” He added that Washington would no longer accept what it views as efforts to silence US users or constrain American firms.
Elon Musk echoed that sentiment by amplifying comments from US telecom regulator Brendan Carr, who accused the EU of weaponizing regulation to go after a successful American platform. Carr argued that the bloc was effectively “taxing Americans to support a region held back by its own regulatory excess.”
US Vice President JD Vance also weighed in, claiming X was being punished “for refusing to participate in censorship,” and argued that Europe should be promoting open debate rather than targeting companies “over nonsense.”
The tensions come against a backdrop of long-running US resistance to Europe’s digital strategy. Successive administrations have argued that the EU’s taxation proposals and platform rules intentionally disadvantage American firms. Brussels, however, maintains that the regulations apply uniformly and are essential to safeguarding competition, user privacy, and online safety.
Trade disputes, industrial subsidies, and environmental standards have already strained EU–US relations in recent years. The latest clash over the DSA adds yet another fault line between Washington and Brussels as both sides navigate an increasingly contentious global tech landscape.
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