X announced Friday that it is formally challenging a $140 million fine imposed by the European Commission under the European Union’s Digital Services Act, a sweeping online speech regulation law that critics have labeled a digital “censorship” regime.
The social media platform was fined in December 2025 for what the Commission described as non-compliance with the DSA. The law empowers EU authorities to penalize technology companies that allegedly fail to remove what regulators classify as misinformation or other illegal content.
On Monday, X filed an appeal in the EU’s General Court, arguing that the enforcement process was flawed and violated fundamental principles of due process.
“This EU Decision resulted from an incomplete and superficial investigation, grave procedural errors, a tortured interpretation of the obligations under the DSA, and systematic breaches of rights of defence and basic due process requirements suggesting prosecutorial bias,” X’s Global Government Affairs team said in a statement. “X remains committed to user safety and transparency while defending our users’ access to the only global town square.”
The case marks the first major legal challenge to the Digital Services Act, which critics argue gives European regulators sweeping authority to police online speech and punish platforms that do not align with their standards.
Under the DSA, the European Commission can impose steep financial penalties on companies it believes are not doing enough to combat so-called disinformation. In certain circumstances, American tech firms may be fined up to 6% of their global annual revenue for violations.
The law relies in part on non-governmental organizations that advise regulators on whether online content may violate EU standards. It also imposes significant reporting and compliance obligations on tech companies operating within the bloc.
X’s legal fight is being supported by Alliance Defending Freedom International, a legal advocacy organization that has been outspoken in its criticism of the DSA.
“X is where millions of people go to freely express their views. This is a crackdown on X by authorities who view a free speech platform as a serious threat to their total control of online narratives,” said Adina Portaru, senior European counsel for ADF International. “By targeting X, they are targeting the free speech of individuals across the world who simply want to share ideas online free from censorship.”
Portaru warned that the concentration of power within the European Commission to define moderation rules, launch investigations, and levy fines poses broader concerns.
“If the Commission’s concentration of power goes unchallenged, it will further cement a highly problematic standard for speech control across the EU and beyond,” she said.
In October, ADF International led a letter signed by more than 100 free speech advocates urging the European Commission to reconsider the law. The Commission later maintained in a November review that the act is content-neutral.
X owner Elon Musk sharply criticized the fine when it was issued, calling it “bullsh*t” and stating the day after that the European Union should be “abolished.”
Opposition to the Digital Services Act has also emerged in Washington. President Donald Trump commented in December that “Europe has to be very careful,” adding, “Europe is going in some bad directions. It’s very bad for the people.”
Last week, House Judiciary Committee Chairman Jim Jordan, R-Ohio, said lawmakers are exploring legislation aimed at protecting American companies from penalties under foreign speech-regulation laws. The committee has released documents it says show the European Union pressured tech companies to adopt guidelines defining acceptable speech on issues including mass migration and men competing in women’s sports.
As X’s legal battle unfolds, the outcome could have significant implications for how global tech companies navigate the growing tension between government regulation and free expression online.
