European Union regulators are reportedly contemplating imposing a hefty $1 billion fine on Elon Musk’s social media platform, X, following allegations of violations related to the Digital Services Act (DSA). The potential fine reflects a calculation that includes revenues from Musk’s other enterprises, such as Tesla and SpaceX, as reported by The New York Times.
The DSA, which came into effect in October 2022, was established to oversee social media platforms and mitigate illegal and harmful online activities. The regulation enables authorities to levy fines of up to 6% of a company’s global revenue for non-compliance.
A spokesperson from the European Commission declined to comment on the specific situation involving X but emphasized the commitment to enforce EU laws impartially across all entities operating within the region.
X’s Global Government Affairs team has expressed that the reported fine would represent an unprecedented instance of political censorship, arguing that the platform has taken extensive measures to comply with the DSA. They assert their determination to defend their business practices, ensure user safety, and uphold free speech throughout Europe.
In addition to potential financial penalties, regulators may also demand significant product adjustments from X, with an announcement regarding the complete scope of penalties expected in the upcoming months. Meanwhile, a separate investigation has been launched, probing X’s management of user-generated content, which is alleged to have fostered a proliferation of hate speech and disinformation.
Ongoing Investigation and Past Rulings
The EU’s investigation into X commenced in 2023 and has led to preliminary findings indicating that the platform failed to provide essential data to independent researchers, lacked transparency concerning advertisers, and did not adequately verify users with verified accounts, all in violation of the DSA.
In response to an earlier ruling, X highlighted numerous points of contention, with Musk alleging that EU regulators hinted at an unpublicized agreement implying that suppression of particular content could exempt X from facing fines. The former EU commissioner for internal market, Thierry Breton, refuted this claim, stating that the intended procedures for settlement were indeed followed.
Musk, for his part, has voiced his anticipation of a thorough legal confrontation that would bring crucial insights to public attention regarding this matter.
As the situation develops, stakeholders within the tech and regulatory communities will be closely monitoring the outcomes and implications of the EU’s actions against X, with broader repercussions likely for social media regulations on a global scale.
