The European Union has slapped a 120 million euro ($140m) penalty on Elon Musk’s social media platform X for breaching digital transparency rules, igniting a transatlantic clash over tech regulation.

Brussels announced the fine on Friday in its first enforcement action under the Digital Services Act, legislation designed to rein in social media companies.

The decision has deepened tensions with Washington, where officials accused Europe of targeting US businesses under the guise of protecting users.

European regulators found X guilty of three violations after a two-year investigation. The platform’s paid blue checkmark system, which Brussels said “deceives users” about account authenticity, drew a 45 million euro ($52.4m) penalty.

X was fined another 35 million euros ($40.7m) for faili

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