BRUSSELS — The European Commission is cracking down on two Chinese companies, airport scanner maker Nuctech and e-commerce giant Temu, that are suspected of unfairly penetrating the EU market with the help of state subsidies. The EU executive opened an in-depth probe into Nuctech under its Foreign Subsidies Regulation on Thursday, a year and a half after initial inspections at the company’s premises in Poland and the Netherlands. “The Commission has preliminary concerns that Nuctech may have been granted foreign subsidies that could distort the EU internal market,” the EU executive said in a press release.  Nuctech is a provider of threat detection systems including security and inspection scanners for airports, ports, or customs points in railways or roads located at borders, as well as the provision of related services.  EU officials worry that Nuctech may have received unfair support from China in tender contracts, prices and conditions that can’t be reasonably matched by other market players in the EU.  “We want a level playing field on the market for such [threat detection] systems, keeping fair opportunities for competitors, customers such as border authorities,” Executive Vice President Teresa Ribera said in a statement, noting that this is the first in-depth investigation launched by the Commission on its own initiative under the FSR regime.  Nuctech may need to offer commitments to address the Commission’s concerns at the end of the in-depth probe, which can also end in “redressive measures” or with a non-objection decision.   The FSR is aimed at making sure that companies operating in the EU market do so without receiving unfair support from foreign governments. In its first two years of enforcement, it has come under criticism for being cumbersome on companies and not delivering fast results.  In a statement, Nuctech acknowledged the Commission’s decision to open an in-depth investigation. “We respect the Commission’s role in ensuring fair and transparent market conditions within the European Union,” the company said. It said it would cooperate with the investigation: “We trust in the integrity and impartiality of the process and hope our actions will be evaluated on their merits.” TEMU RAIDED In a separate FSR probe, the Commission also made an unannounced inspection of Chinese e-commerce platform Temu.  “We can confirm that the Commission has carried out an unannounced inspection at the premises of a company active in the e-commerce sector in the EU, under the Foreign Subsidies Regulation,” an EU executive spokesperson said in an emailed statement on Thursday.   Temu’s Europe headquarters in Ireland were dawn-raided last week, a person familiar with Chinese business told POLITICO. Mlex first reported on the raids on Wednesday.  The platform has faced increased scrutiny in Brussels and across the EU. Most recently, it was accused of breaching the EU’s Digital Services Act by selling unsafe products, such as toys. The platform has also faced scrutiny around how it protects minors and uses age verification.  Temu did not respond to a request for comment.

Listen on * Spotify * Apple Music * Amazon Music Der Konflikt zwischen der EU und den USA spitzt sich zu und trägt einen neuen Namen. Elon Musk. Die Strafe der EU gegen seine Plattform X löst eine Welle politischer Angriffe aus. Musk stellt die EU infrage, verbündet sich mit rechten Akteuren und verstärkt ein transatlantisches Spannungsfeld, das weit über die digitale Welt hinausgeht. Gordon Repinski ordnet ein, warum diese Auseinandersetzung eine Probe für die europäische Regulierungskraft ist und welche geopolitischen Muster sich darin spiegeln . Im 200-Sekunden-Interview spricht Damian von Boeselager, Mitgründer und EU-Abgeordneter von Volt, über die Regulierung von Plattformen. Er erläutert, warum der Digital Services Act aus seiner Sicht notwendig ist, welche Risiken von algorithmischer Machtkonzentration ausgehen und ob Europa langfristig eine öffentlich getragene Alternative zu privaten sozialen Netzwerken braucht. Anschließend berichtet Rasmus Buchsteiner aus Brüssel über den erzielten Kompromiss im Migrationspaket. Er erklärt, wie Rückführungen, Solidaritätsmechanismen und neue Herkunftsstaatlisten zusammenhängen und wie der Besuch von Wolodymyr Selenskyj zum europäischen Jahresendspurt gehört. Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig. Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. Jetzt kostenlos abonnieren. Mehr von Host und POLITICO Executive Editor Gordon Repinski: Instagram: @gordon.repinski | X: @GordonRepinski. Legal Notice (Belgium) POLITICO SRL Forme sociale: Société à Responsabilité Limitée Siège social: Rue De La Loi 62, 1040 Bruxelles Numéro d’entreprise: 0526.900.436 RPM Bruxelles info@politico.eu www.politico.eu

BRUSSELS — The European Commission said it will “make sure” it receives money owed by Elon Musk’s X after the company was fined €120 million for failing to meet transparency rules. The Commission on Friday said X has breached transparency and deceptive design obligations under the EU’s platforms regulation, the Digital Services Act, and issued the €120 million penalty. The decision set off a cascade of accusations of censorship from U.S. officials, Musk and his supporters, with some suggesting the company should refuse to pay the fine. “X will have to pay that fine. The €120 million will have to be paid. We will make sure that we get this money,” Commission Spokesperson Thomas Regnier told reporters during a daily press briefing, when asked how the EU can ensure that X pays the penalty. He noted X still has the opportunity to challenge the decision in court. “There are procedural steps to take into account, and any decision taken by the Commission can be challenged in front of the Court of Justice of the European Union,” he said. Speaking to POLITICO after the briefing, Regnier called for patience: “Let’s not jump the gun. We have just taken a decision and issued a fine to X. The company now has to pay the fine and [has] 90 days to get back to us.” X has repeatedly gone to court to challenge regulatory decisions it disagrees with. The company has not yet said whether it will appeal Friday’s decision. X has yet to issue an official company response, with its Global Government Affairs account, which voices the company’s views on regulatory matters, reposting U.S. officials’ views. Musk on Saturday threatened action against both the EU and unnamed individuals. “The ‘EU’ imposed this crazy fine not just on [X], but also on me personally, which is even more insane!” he wrote on X. “Therefore, it would seem appropriate to apply our response not just to the EU, but also to the individuals who took this action against me.” The company hasn’t replied to POLITICO’s repeated requests for comment. Regnier also justified the Commission’s continued use of X as a platform for corporate communications, despite the severity of anti-EU comments posted by Musk over the weekend and the platform’s decision to suspend the Commission’s account for paid advertising. The EU executive uses 15 social media platforms and hasn’t made a decision to suspend its use of X, Regnier said. All these platforms are ways to “get in touch to citizens, stakeholders, to do some outreach work, to precisely speak about what we are doing in the EU,” he said. Statements comparing the EU to Nazi Germany are “part of the freedom of speech that we very much praise in the EU,” which “allows even for the craziest statements that you can imagine,” Chief Spokesperson Paula Pinho said. The Commission stopped “using paid advertising or any paid services for X” in 2023 and its regular account remains open, Regnier said. The Commission did not respond to questions as to whether it has heard from U.S. officials directly on the matter since the fine was announced. Regnier said the EU executive remains in touch with the company and that X was informed ahead of the announcement.

BRUSSELS — The United States should “not threaten to interfere in the democratic life” of its European allies, European Council President António Costa said. Costa’s remarks were some of the first to come from senior EU leadership since the unveiling of the U.S. National Security Strategy, in which the White House set out its approach to the geopolitical challenges facing the U.S. and the world. Speaking at the Jacques Delors Conference in Paris on Monday, Costa said that while Europe and the United States remain partners, the foundations of that partnership require mutual respect, particularly in moments of political divergence. “Certainly, this [U.S.] strategy continues to speak of Europe as an ally. That’s good,” Costa said. “But if we are allies, we must act as allies. And allies do not threaten to interfere in the democratic life or the domestic political choices of these allies. They respect them. They respect each other’s sovereignty.” According to Costa, critical remarks by U.S. Vice President JD Vance and social media posts from President Donald Trump are no longer isolated outbursts but now constitute “the doctrine of the United States.” “We must take note and act accordingly,” he said. “This means that we need more than just new energy. We need to focus on building a Europe that must understand that the relationships between allies and the post-World War II alliances have changed.” At the heart of Costa’s message was Europe’s refusal to accept external political pressure. “The United States cannot replace European citizens in deciding which are the right parties and the wrong parties,” he said, a reference to the part of the U.S. strategy referring to the support of “patriotic European parties.” Costa also noted that the new U.S. approach reflects a broader shift away from multilateralism, a weakening commitment to the rules-based international order and the abandonment of climate action as a strategic priority. “We have differences in our worldviews,” he warned Costa also mounted a direct defense of the EU’s regulatory autonomy, including last week’s high-profile fine imposed on social platform X under the Digital Services Act. He rejected criticism from Washington and from U.S. tech leaders, saying Europe’s actions are grounded in its democratic model. “The United States cannot replace Europe in its vision of freedom of speech,” he said. “Our history has taught us that there is no freedom of speech without freedom of information. And freedom of information exists where there is respect for pluralism.” He added: “There will be no freedom of speech if citizens’ freedom of information is sacrificed to defend the tech oligarchs of the United States.”

Europe’s far-right firebrands are rushing to hitch their fortunes to Washington’s new crusade against Brussels. Senior U.S. government officials, including Vice President JD Vance and Secretary of State Marco Rubio, have launched a raft of criticism against what they call EU “censorship” and an “attack” of U.S. tech companies following a €120 million fine from the European Commission on social media platform X. The fine is for breaching EU transparency obligations under the Digital Services Act, the bloc’s content moderation rule book. “The Commission’s attack on X says it all,” Hungarian Prime Minister Viktor Orbán said on X on Saturday. “When the Brusselian overlords cannot win the debate, they reach for the fines. Europe needs free speech, not unelected bureaucrats deciding what we can read or say,” he said. “Hats off to Elon Musk for holding the line,” Orbán added. Tech mogul Musk said his response to the penalty would target the EU officials who imposed it.  “The European Commission appreciates censorship & chat control of its citizens. They want to silence critical voices by restricting freedom of speech,” echoed far-right Alternative for Germany leader Alice Weidel. Three right-wing to far-right parties in the EU are pushing to stop and backtrack the integration process of European countries — the European Conservatives and Reformists, the Patriots for Europe, and the Europe of Sovereign Nations. Together they hold 191 out of 720 seats in the European Parliament. The parties’ lawmakers are calling for a range of proposals — from shifting competences from the European to the national level, to dismantling the EU altogether. They defend the primacy of national interests over common European cooperation. Since Donald Trump’s reelection, they have portrayed themselves as the key transatlantic link, mirroring the U.S. president’s political campaigning in Europe, such as pushing for a “Make Europe Great Again” movement. The fresh U.S. criticism of EU institutions has come in handy to amplify their political agendas. “Patriots for Europe will fight to dismantle this censorship regime,” the party said on X. The ECR group — political home to Italian Prime Minister Giorgia Meloni — issued a statement questioning the enforcement of the DSA following the U.S. criticism. “A digital law that lacks legal certainty risks becoming an instrument of political discretion,” ECR co-chairman Nicola Procaccini said on Saturday after the U.S. backlash. The group supported the DSA when it passed through the Parliament, having said in the past the law would “protect freedom of expression, increase trust in online services and contribute to an open digital economy in Europe.”

LISBON — Ursula von der Leyen’s European Commission should continue to enforce its digital rules with an iron fist despite the outcry from U.S. officials and big tech moguls, co-chair of the Greens in the European Parliament Bas Eickhout told POLITICO. As Green politicians from across Europe gather in the Portuguese capital for their annual congress, U.S. top officials are blasting the EU for imposing a penalty on social media platform X for breaching its transparency obligations under the EU’s Digital Services Act, the bloc’s content moderation rule book. “They should just implement the law, which means they need to be tougher,” Eickhout told POLITICO on the sidelines of the event. He argued that the fine of €120 million is “nothing” for billionaire Elon Musk and that the EU executive should go further. The Commission needs to “make clear that we should be proud of our policies … we are the only ones fighting American Big Tech,” he said, adding that tech companies are “killing freedom of speech in Europe.” The Greens have in the past denounced Meta and X over their content moderation policies, arguing these platforms amplify “disinformation” and “extremism” and interfere in European electoral processes. Meta and X did not reply to a request for comment by the time of publication. Meta has “introduced changes to our content reporting options, appeals process and data access tools since the DSA came into force and are confident that these solutions match what is required under the law in the EU,” a Meta spokesperson said at the end of October. Tech mogul Musk said his response to the penalty would target the EU officials who imposed it. U.S. Secretary of State Marco Rubio said the fine is “an attack on all American tech platforms and the American people by foreign governments,” and accused the move of “censorship.” “It’s not good when our former allies in Washington are now working hand in glove with Big Tech,” blasted European Green Party chair Ciarán Cuffe at the opening of the congress in Lisbon. Eickhout, whose party GreenLeft-Labor alliance is in negotiations to enter government in the Netherlands, said “we should pick on this battle and stand strong.” The Commission’s decision to fine X under the EU’s Digital Services Act is over transparency concerns. The Commission said the design of X’s blue checkmark is “deceptive,” after it was changed from user verification into a paid feature. The EU’s executive also said X’s advertising library lacks transparency and that it fails to provide access to public data for researchers as required by the law.  Eickhout lamented that European governments are slow in condemning the U.S. moves against the EU, and argued that with its recent national security strategy, the Americans have made clear their objective is to divide Europe from within by fueling far-right parties. “Some of the leaders like [French President Emmanuel] Macron are still desperately trying to say that that the United States are our ally,” Eickhout said. “I want to see urgency on how Europe is going to take its own path and not rely on the U.S. anymore, because it’s clear we cannot.”

The European Commission has lost access to its control panel for buying and tracking ads on Elon Musk’s X — after fining the social media platform €120 million for violating EU transparency rules. “Your ad account has been terminated,” X’s head of product, Nikita Bier, wrote on the platform early Sunday. Bier accused the EU executive of trying to amplify its own social media post about the fine on X by trying “to take advantage of an exploit in our Ad Composer — to post a link that deceives users into thinking it’s a video and to artificially increase its reach.” The Commission fined X on Thursday for breaching the EU’s rules under the Digital Services Act (DSA), which aims to limit the spread of illegal content. The breaches included a lack of transparency around X’s advertising library and the company’s decision to change its trademark blue checkmark from a means of verification to a “deceptive” paid feature. “The irony of your announcement,” Bier said. “X believes everyone should have an equal voice on our platform. However, it seems you believe that the rules should not apply to your account.” Trump administration has criticized the DSA and the Digital Markets Act, which prevent large online platforms, such as Google, Amazon and Meta, from overextending their online empires. The White House has accused the rules of discriminating against U.S. companies, and the fine will likely amplify transatlantic trade tensions. U.S. Secretary of Commerce Howard Lutnick has already threatened to keep 50 percent tariffs on European exports of steel and aluminum unless the EU loosens its digital rules. U.S. Vice President JD Vance blasted Brussels’ action, describing the fine as a response for “not engaging in censorship” — a notion the Commission has dismissed. “The DSA is having not to do with censorship,” said the EU’s tech czar, Henna Virkkunen, told reporters on Thursday. “This decision is about the transparency of X.”

Elon Musk slammed the EU after it slapped a fine on his social media platform X for violating transparency rules, warning his response would target the top officials behind the penalty. “The ‘EU’ imposed this crazy fine not just on [X], but also on me personally, which is even more insane!” the billionaire Tesla CEO wrote on X. “Therefore, it would seem appropriate to apply our response not just to the EU, but also to the individuals who took this action against me.” The rebuke comes after the European Commission on Friday imposed a €120 million fine on Musk’s platform for breaching transparency obligations it faces as a very large online platform under the EU’s Digital Services Act, the bloc’s flagship content moderation law. The EU executive said the platform’s blue checkmark feature was deceptive after it was changed from denoting verified users into a paid feature. It also said X’s advertising library lacks transparency, and that it fails to provide access to public data for researchers. A Commission official said the executive has found three entities behind X; X Holdings Companies, xAI and Elon Musk “at the top.” Commission spokesperson Thomas Regnier said the fine is “for a breach committed by X” but “addressed to the entire corporate structure.” “The EU woke Stasi commissars are about to understand the full meaning of the ‘Streisand Effect,'” Musk fumed. The “Streisand effect” refers to when an attempt to keep something discreet backfires. Musk didn’t elaborate on what form his response to the X levy would take or which individuals he would target directly. The fine on X and its owner has already drawn a sharp rebuke from Washington, with U.S. officials depicting the bloc’s move as an assault on broader free speech rights, with some alleging that U.S. companies were being singled out. Vice President JD Vance criticized the fine after details leaked ahead of time. “The EU should be supporting free speech not attacking American companies over garbage,” Vance said. When asked about Vance’s remarks, the Commission’s Executive Vice President for Tech Sovereignty Henna Virkkunen told reporters: “The DSA is having not to do with censorship, this decision is about the transparency of X.”  Secretary of State Marco Rubio, in a Friday post on the platform, said the fine “isn’t just an attack on [X], it’s an attack on all American tech platforms and the American people by foreign governments. The days of censoring Americans online are over. Deputy Secretary of State Christopher Landau added to the criticism, saying that the “nations of Europe cannot look to the US for their own security at the same time they affirmatively undermine the security of the US itself through the (unelected, undemocratic, and unrepresentative) EU.” Trump’s EU envoy Andrew Puzder also slammed the penalty. The “excessive €120M fine is the result of EU regulatory overreach targeting American innovation,” Puzder wrote on X. “The Trump Administration has been clear: we oppose censorship and will challenge burdensome regulations that target US companies abroad. We expect the EU to engage in fair, open, & reciprocal trade — & nothing less.” The move adds another layer of tension to the EU’s strained relationship with the Trump administration, with the U.S. president threatening to impose additional tariffs on the bloc if it continues to penalize American tech giants. The topic has been a theme of tense trade talks in recent months, with the U.S. pushing Brussels to scrap the DSA, along with other enforcement measures. While the fine was cautiously praised in Brussels and other European capitals, where officials had worried that the EU executive would bow to demands that it rein in its enforcement of U.S. tech firms, some European politicians more aligned with the U.S. agenda joined in on the criticism. “Nobody elected you,” wrote far-right Dutch firebrand Geert Wilders. “You represent no one. You are a totalitarian institution and can’t even spell the words freedom of speech. We should not accept the fining of [X], but abolish the [Commission].” The fine was only the conclusion of the first part of the EU’s probe into X, which will also look at the content circulated on the platform. X did not immediately respond to request for comment.

BRUSSELS — The European Commission plans to wrap several of its investigations into Big Tech under the bloc’s content moderation law soon, tech chief Henna Virkkunen said Friday. That’s likely to enrage officials in Washington, several of whom said that they consider U.S. companies are being unfairly targeted by Brussels. The European Commission on Friday slapped a €120 million fine on Elon Musk’s X for not complying with transparency obligations under the EU’s Digital Services Act (DSA). It was the first-ever fine under the law that makes platforms liable for content moderation. “In the coming months, there will be more decisions coming,” Virkkunen told reporters after a meeting of EU digital affairs ministers in Brussels. “With most of the investigations, we already have published the preliminary findings, and after that, the next step is to encourage those online platforms to comply with our rules,” she said. If they don’t, a non-compliance decision — which could include a fine — would follow. While European politicians expressed cautious praise for the X decision on Friday, the Trump administration reacted with fury. “The European Commission’s $140 million fine isn’t just an attack on @X, it’s an attack on all American tech platforms and the American people by foreign governments,” Secretary of State Marco Rubio posted on X. “The days of censoring Americans online are over.” When asked by POLITICO to respond to the accusation that the EU is unfairly targeting American companies, Virkkunen said that of 10 platforms under formal investigation under the DSA, only three are U.S. companies. French President Emmanuel Macron said last week he felt Brussels was “afraid” of tackling U.S. Big Tech and that an “American offensive” had cowed the European Commission. In a press briefing earlier in the day, Virkkunen said that in the case of X, it had taken too long to go from preliminary findings to a final decision. “I agree that it took a very long time, especially from the preliminary findings, because the preliminary findings on this topics [were] already published in summer 2024,” she said.

BRUSSELS — European politicians expressed cautious praise as Brussels slapped a €120 million fine on Elon Musk’s X on Friday, despite American fury over the decision.  The reaction from national diplomats and lawmakers illustrated broad support as the EU finally crossed a Rubicon and issued its first fine under the EU’s rule book to rein in social media platforms, more than two years after it started its enforcement effort.  The divide between the reaction from European capitals and U.S. Vice President JD Vance — who slammed the move before it was announced — sets up a clash that is set to persist as Brussels turns its attention to more enforcement decisions under the Digital Services Act (DSA), and will likely spill into ongoing transatlantic trade talks. Friday’s decision “sends an important signal that the Commission is determined to enforce the DSA,” said Karsten Wildberger, Germany’s digital minister, during a meeting of EU ministers in Brussels. Polish Digital Minister Dariusz Standerski applauded it as a sign of “strong leadership.” After French President Emmanuel Macron last week expressed outspoken criticism of the EU for slow-walking the conclusions, his digital minister, Anne Le Hénanff, said Friday: “France fully supports this decision … which sends a clear message to all platforms.” She later described it as a “magnificent announcement.” Washington meanwhile was quick out of the gate to slam the move from Brussels, with Vance chiming in half a day before the fine was announced to describe it as a penalty “for not engaging in censorship.” He repeated the U.S. mantra of the past year that the EU’s DSA amounts to censorship and restricted speech. “Once again, Europe is fining a successful U.S. tech company for being a successful U.S. tech company,” said Brendan Carr, the chair of the U.S. Federal Communications Commission, in reaction to the decision. “Europe is taxing Americans to subsidize a continent held back by Europe’s own suffocating regulations.” “The only substantial meaningful fines that have been imposed so far have been against American companies,” Andrew Puzder, the U.S. ambassador to the EU, told Bloomberg Television. “So at some point, if you’re an American company, you’ve gotta sit back and say, look, am I being targeted here?” Asked for a response, the White House directed POLITICO to Vance’s earlier post. Much of the praise in Europe focused on the assessment that the EU didn’t bow to U.S. pressure, neither on the actual fine nor the enforcement steps — even if the move was seen as long overdue. “The Commission held the line,” said Felix Kartte, currently a special adviser to the European Commission.   “It’s important that the EU does not cave to pressure,” said Marietje Schaake, a former MEP and former Commission adviser.  “I am very pleased to see that the Commission is taking serious steps against the intolerable practices we encounter from some of the major tech platforms. Let’s have more of that!” said Danish digital minister Caroline Stage Olsen.  Several European Parliament lawmakers joined the praise but warned this is only the beginning, noting this is the first of several outstanding probes under the DSA, including others against X. Friday’s decision only concerned X’s transparency obligations; X still faces open probes over the spread of illegal content and information manipulation.  In total, 10 investigations into large platforms including Amazon, YouTube, Facebook and Instagram are still up in the air. “This is an important start, but not a breakthrough,” said German Greens lawmaker Alexandra Geese. “As long as the Commission fails to rule on the algorithms, the central level of manipulation remains untouched.”   French liberal lawmaker Sandro Gozi urged that “this long overdue decision must mark a step change,” while Danish Social Democrat Christel Schaldemose said she wanted “far greater transparency” on how the Commission enforces the DSA.  Speaking to reporters Friday, Commission digital chief Henna Virkkunen stressed repeatedly that this is only part of the investigation into X. Acknowledging the criticisms that the EU has been slow to reach this point, she promised that the next decisions would come quicker.   Other observers criticized the size of the X penalty. A fine of €120 million is seen as relatively modest compared to the €2.95 billion fine that Google got for antitrust issues under the bloc’s sister digital law, the Digital Markets Act.   “120m is no deterrent to X,” said Cori Crider, executive director at the Future of Technology Institute. “Musk will moan in public — in private, he will be doing cartwheels.”   “Yes, the fine may seem small,” acknowledged Kartte. The DSA law says fines will take into account “the nature, gravity, duration and recurrence of the infringement” and cannot exceed 6 percent of a company’s annual global turnover.  Commission officials refused to give a clear answer on how they came to the €120 million figure when pressed. A senior official repeatedly said the fine is “proportionate” to the infringement. But how it was calculated can’t be “drilled down to a simple economic formula,” they said. The official said the Commission has found three entities behind X; X Holdings Companies, xAI and Elon Musk “at the top.”   The fine is “for a breach committed by X” but “addressed to the entire corporate structure,” Commission spokesperson Thomas Regnier told reporters.   Based on estimates of company values, that means the upper threshold could have reached as high as €5.9 billion.