Elon Musk's X fined $139,000,000 as new digital laws come into place

If Elon Musk is known for three things, it’s arguably his moniker as the world's richest man, helping continue his legacy by fathering children, and dealing with legal wranglings.

Whether it's Tesla being sued over wrongful death suits or SpaceX amid allegations of discrimination, he's also been forced to reach a settlement when the former CEO of Twitter sued him for wrongful dismissal. Even Tesla's own shareholders tried to sue Mr. Musk while alleging they were misled over Robotaxi's long-gestated rollout.

It's not just Elon Musk being on the receiving end, as the tech mogul has also raised lawsuits against OpenAI and Apple, while a whole host of companies, including Disney, Nestlé, and LEGO, have all faced his wrath for allegedly conspiring to boycott advertising on X.

Still, with reports that X has lost up to 80% of its value since Musk shelled out $44 billion for it in 2022, it might not have been the best investment.

Musk could soon be stung for even more, as The Guardian reports that the social media giant is being fined a whopping €120 million ($139 million) for breaching European Union digital laws.

The outlet warns that this could put the European Commission on a 'collision course' with the billionaire…and possibly President Donald Trump.

Concluding a two-year investigation, the breaches see X fined for its supposedly 'deceptive' blue tick verified badge and a lack of transparency when it comes to advertising on X.

The EU Commission requires tech companies to deliver a public list of advertisers to ensure they guard against "illegal scams, fake advertisements and coordinated campaigns in the context of political elections."

A third breach alleges that X failed to hand over public data to researchers, maintaining that this is imperative to those who try to keep tabs on the likes of political content.

X was found to be in breach of transparency obligations under the Digital Services Act (DSA), marking the first ruling against a social media platform since regulations came into play in 2023.

The DSA's rules state that X can be fined up to 6% of its worldwide revenue, which it estimated to be somewhere between $2.5 billion and $2.7 billion in 2024.

In the aftermath of several big names fleeing X for Bluesky and Musk's own ex-wife referring to it as 'poison', the European Commission's other investigations relate to accusations that algorithms are promoting content, as well as potential breaches of laws against inciting violence or terrorism.

Finally, it's looking at how users can flag and report content that they believe is illegal.

Breaking down the $139 million fine, senior officials allocated €45m for introducing the paid-for blue tick, €35m for breaching ad regulations, and €40m for data access breaches.

Calling X to task, European Commission vice-president Henna Virkkunen said: “With the DSA’s first non-compliance decision, we are holding X responsible for undermining users’ rights and evading accountability.

"Deceiving users with blue checkmarks, obscuring information on ads, and shutting out researchers have no place online in the EU."

As for where the POTUS comes into things, US Commerce Secretary Howard Lutnick told the EU to reevaluate its tech regulations if it wants to reduce the current 50% tariffs on steel.

Teresa Ribera, the EU commissioner in charge of Europe’s green transition and antitrust enforcement, branded Lutnick's words as 'blackmail', and now, Musk has 90 days to reveal an 'action plan' relating to the fine or to appeal the EU ruling.

Given how both Musk and Trump have proved they aren't afraid to throw their weight around with sanctions, the EU could be opening a dangerous can of tech worms.