2 weeks Ago By Moneycontrol
The European Union is ready to impose far-reaching sanctions on Elon Musk's social network X, including a possible more than $1 billion fine and forced product modifications, for breaching the bloc's Digital Services Act, four individuals conversant with the plans said. The action would be the first serious enforcement of the law intended to hold back illegal material and disinformation on digital platforms, the New York Times reported. Scheduled to be announced this summer, the fines follow a heightening of tensions between the EU and the US, where Musk is still a close confidant of President Trump.
European officials indicate that the probe into X is going ahead separately from current controversies over trade, tariffs, and US backing for Ukraine. X is under twin probes and increasing regulatory pressure The present case is a result of a 2023 investigation where EU regulators established that X had broken the law by not being transparent about advertising, not giving researchers access to disinformation information, and insufficiently authenticating users with "verified" accounts. A second, more general investigation is also ongoing, developing a case that X's limited content moderation has enabled hate speech and disinformation to spread, weakening democratic discourse throughout the 27-member bloc.
If the regulators catch X in violation once more, the firm may incur further fines. Fines are capped at 6% of a firm's worldwide revenue under the Digital Services Act. As X is a private company owned by Musk, regulators are deciding whether to add revenue from his other businesses, such as SpaceX, to the penalty calculation—potentially boosting the possible fine far beyond $1 billion.
Musk braces for legal battle, threatens censorship X has denied the charges and indicated it will resist. In a statement published following the article's appearance, the company referred to the EU's actions as "an unprecedented act of political censorship and an attack on free speech," stating that it would take every legal measure possible to defend itself and "protect freedom of speech in Europe." Elon Musk has a long history of attacking European online regulation as a threat to free speech.
In 2024, when preliminary results were made public, he publicly committed to fighting any judgment in court, vowing "a very public battle." Regulatory enforcement under geopolitical tensions The EU's pressure on X is coming at a moment of increased tensions over trade. The Trump administration just imposed a new round of tariffs on European products, and there is worry that additional penalties on American tech firms could exacerbate diplomatic tensions.
In February, Vice President JD Vance compared EU content regulations to censorship of the internet, and a White House memo cautioned that the EU's technology regulations were under review for allegedly unfairly targeting US companies. Nonetheless, Brussels seems unfazed. "We have always applied and will continue applying our laws equally and without prejudice to all firms doing business in the EU," stated a European Commission official, not naming X.
Broader crackdown on tech giants underway X is not the only one to come under EU examination. Meta and Apple are also likely to be sanctioned under the 2022 Digital Markets Act, designed to promote competition in the tech industry. Meta is also being probed for not doing enough to protect children on its sites—another likely breach of the Digital Services Act.
The investigations underscore the European Union’s growing resolve to regulate digital platforms more aggressively. Over the past decade, the bloc has taken enforcement actions against Amazon, Google, Apple, and Meta for antitrust violations, privacy breaches, and weak content oversight. As the Musk case barrels toward a potential high-stakes court showdown, regulators and technology firms are closely observing to determine if the EU might establish a worldwide precedent for holding influential digital platforms responsible.
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