Elon Musk has called for the abolition of the European Union (EU) after the bloc imposed a $140 million fine on the social network X for failing to comply with digital laws.

Musk’s attack against the bloc reflects the deepening tensions between the United States (US) and its European counterparts, where the tech billionaire’s efforts to interfere in politics received a cold welcome.

Why did the EU fine Musk’s X?

The European Commission, the executive branch of the EU, issued a €120M ($140M) fine to X for breaching transparency rules under the Digital Services Act (DSA).

The breaches cited by the commission include the deceptive design of its “blue checkmark,” which it says violates the DSA obligation for online platforms to prohibit deceptive design practices on their services.

According to the EU, anyone on X can pay to obtain the “verified” status without the company meaningfully verifying who is behind the account. This exposes users to scams, including impersonation fraud, and other forms of manipulation by malicious actors.

Before Musk’s takeover of X, formerly known as Twitter, the blue checkmark marked independently verified accounts of public interest, including celebrities, journalists, and politicians.

Musk turned the blue checkmark into a paid feature in 2022, which now indicates the account has an active subscription to X Premium. This led to a rise in fake accounts posing as high-profile individuals, such as former president Joe Biden and even Musk himself.

The commission states that X violated the rule regarding the platform’s ads repository, a database that allows users and marketers to view all ads currently or recently running on their services.

According to the block, X incorporates design features and access barriers, such as excessive delays in processing, which undermine the purpose of ad repositories.

Moreover, it states that X's ads repository lacks critical information, such as the content and topic of the advertisement and the legal entity paying for it, hindering researchers’ and the public’s ability to independently scrutinize any potential risks in online advertising.

The commission states that X fails to meet its DSA obligations by not providing researchers with access to the platform's public data.

Did X pay the fine?

The bloc gave X 60 working days to address the issue related to the deceptive use of blue checkmarks.

Furthermore, the company has 90 working days to submit to the commission an action plan outlining the necessary measures to address violations related to the ads repository and access to public data for researchers.

X only has to pay the fine if these requirements aren’t met.

Does the EU limit freedom of speech on X?

The fine issued to X requires more transparency over the blue checkmark functionality and adverts on the platform, and doesn’t address users’ content published on the platform.

Nevertheless, Musk launched a tirade against the EU on X over the weekend, calling it “the tyrannical, unelected bureaucracy oppressing the people of Europe.” Comparing it to the Third Reich, Musk called for the bloc’s abolishment.

Andrew Puzder, the US ambassador to the EU, told Bloomberg Television in a Friday interview that the fine reignites fears that the bloc’s digital laws primarily target American tech companies.

On Friday, however, the commission announced that it has secured a commitment from TikTok, a social media platform owned by Chinese ByteDance, to provide advertising repositories that “ensure full transparency around ads on its services.”

Prominent Donald Trump administration officials stepped in to support Musk. The Secretary of State Marco Rubio called the fine “an attack on all American tech platforms and the American people by foreign governments.”

Is Musk vs the EU clash political?

The clash comes while tensions between the Trump administration, which Musk funded during the election, and European counterparts are already flying high.

The US national security strategy released Friday sent shockwaves across the old continent, as it blamed the EU for “creating strife, censorship of free speech and suppression of political opposition.”

Musk’s weekend posts focused on the EU’s migration policy, which is often criticized by the Trump administration and the MAGA movement, whose stance on immigration is much more hardline.

The tech billionaire has previously expressed his support for European anti-immigration parties, such as Alternative for Germany (AfD), causing a backlash among Europeans.

Seventy-one percent of Germans and Britons hold an unfavorable view of Musk, according to a January YouGov survey. More than six in ten (63%) say Musk has little or no knowledge of major political issues in these countries.

​Musk’s political involvement is partly to blame for plummeting Tesla sales in Europe, with Germany seeing some of the steepest drops.

What do the critics say?

Reacting to calls for abolishing the EU, Radoslaw Sikorski, deputy prime minister of Poland, suggested Musk go to Mars, saying that “there's no censorship of Nazi salutes there.”

As Russian officials endorsed Musk lashing out against Europe, some critics accused the tech billionaire of hypocrisy, pointing to the lack of criticism of Russia’s move to ban X entirely.

The Kremlin started blocking X in 2022, soon after its unprovoked invasion of Ukraine, citing the platform’s efforts to comply with Russian laws on “fake news” about the war. Any public criticism of the invasion can lead to criminal charges in the country.

Other critics noted that despite Musk positioning himself as a free speech absolutist, X under his leadership approved 83% more requests for censorship from authoritarian governments, such as Turkey and India, El País reported last year.

Musk responded to what he called the oppressive commission by limiting its reach on X. The platform announced terminating its “ads account” over alleged policy breaches.

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