European Union regulators are preparing to impose significant penalties on Elon Musk's social media platform X for violating the Digital Services Act (DSA), which could include a fine exceeding $1 billion and forced product changes. The EU investigation launched in 2023 found that X broke the law by failing to provide adequate transparency about advertisers, denying external researchers access to disinformation data, and failing to properly verify "verified" accounts, making the platform more vulnerable to abuse and foreign interference.
EU authorities are conducting two parallel investigations against X: the first focusing on the specific violations mentioned above, and a second, more comprehensive investigation alleging that X's lax content moderation practices have made the platform a hub for illegal hate speech, disinformation, and other content undermining democracy across the EU's 27 member states. Under the DSA, companies can be fined up to 6 percent of their global revenue, and since X is solely owned by Musk, the EU is considering including revenue from Musk's other private companies, such as SpaceX, in the fine calculation, potentially raising the possible penalty well above $1 billion. We have always enforced and will continue to enforce our laws fairly and without discrimination toward all companies operating in the EU, in full compliance with global rules, stated a European Commission spokesperson.
The X case emerges at a particularly sensitive time amid escalating trans-Atlantic trade tensions following Donald Trump's announcement of new tariffs, and with Musk serving as a close advisor to President Trump. X has already responded to the expected penalty, calling it an unprecedented act of political censorship and an attack on free speech, while Musk previously stated he was ready to defend his platform in a very public battle in court. The announcement of sanctions against X is expected in summer 2025, though the EU and X could still reach a settlement if the company implements changes that satisfy regulators' concerns. The decision could have far-reaching implications as it will be the first major attempt to enforce the DSA, which requires tech companies to better police their platforms and provide adequate transparency about how their services work.
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Animesh Bhardwaj
