Elon Musk has called for the dissolution of the European Union after social media company X was fined €120 million (approximately $140 million) by the EU for "deceptive" blue checkmarks and lack of transparency in its ad repository.

The European Commission issued the ruling against X under the Digital Services Act (DSA) last Friday, following a two-year investigation. The DSA, enacted in 2022, aims to regulate online platforms. The Commission stated that X's violations included "deceptive design of its 'blue checkmark' system, lack of transparency in its ad repository, and failure to provide public data access to researchers."

Musk responded to the EU's decision in a post on X, calling it "nonsense." He added, "Not only is the EU imposing such an absurd fine on X, but they are also fining me personally—this is utterly ridiculous! Therefore, we should respond not just to the EU but also to those who took this action against me."

On Saturday, Musk escalated his criticism, posting on X: "The EU should be dissolved, and sovereignty should be returned to individual nations so governments can better represent their people."

Musk's remarks came as senior U.S. officials also voiced opposition to the EU's decision.

U.S. Vice President Vance criticized the ruling after details of the fine were leaked in advance, stating, "The EU should support free speech instead of attacking American companies over trivial issues."

U.S. Secretary of State Rubio posted on X last Friday, calling the fine "an attack by a foreign government on all American tech platforms and the American people."

U.S. Ambassador to the EU Andrew Puzder also weighed in on Saturday, saying, "This excessive €120 million fine is a result of the EU's regulatory overreach targeting American innovation. The Trump administration's stance is clear: We oppose censorship and will challenge burdensome regulations imposed on American companies abroad. We expect fair, open, and reciprocal trade from the EU—this is the bare minimum."

The fine has further strained already tense relations between the EU and the Trump administration. The U.S. President previously threatened additional tariffs on the EU if it continued to sanction American tech giants. This issue has been a focal point in recent trade negotiations, with the U.S. urging Brussels to repeal the DSA and other coercive measures.

"With the first DSA non-compliance decision, we are holding X accountable for undermining user rights and evading responsibility," said Executive Vice President Henna Virkkunen, overseeing tech sovereignty, security, and democracy.

X now has 60 days to submit a plan to address the "deceptive" blue checkmark issue and 90 days to resolve concerns regarding its ad repository and public data access for researchers. The Commission warned that failure to comply could result in periodic penalties.