The European Union is preparing to impose a significant fine on Elon Musk’s social media platform X (formerly Twitter) for breaching the Digital Services Act, a law aimed at combating illegal content and disinformation. According to The New York Times, sources familiar with the matter indicate that the penalty could exceed $1 billion (£800 million), making it one of the largest fines ever imposed on a tech company for violating EU regulations.
This fine is expected to be accompanied by requirements for X to make changes to its operations to align with the EU’s regulations on online content moderation. These developments follow an ongoing investigation into the platform’s failure to effectively monitor and remove harmful content, including disinformation and illegal material. This is the first significant penalty to be issued under the new EU law, which was enacted to ensure that social media companies take greater responsibility for the content that appears on their platforms.
The investigation, which began in 2023, has already concluded with a preliminary finding that X violated the law. However, the EU has left open the possibility of an agreement if Musk’s company agrees to implement changes that would meet the regulators’ concerns. The EU’s stance on this issue has become a point of contention between the bloc and the United States, especially given Musk’s close ties to former US President Donald Trump, who has been outspoken in his criticism of EU policies.
In addition to this fine, X is facing a second, more extensive EU investigation. This inquiry focuses on whether X’s failure to control harmful user-generated content has allowed the platform to become a haven for illegal hate speech, disinformation, and other content that undermines democracy within the European Union.
The fine could serve as a strong warning to other tech companies operating in the EU, with European regulators keen to assert their authority over major international platforms. The investigation into X reflects the EU’s commitment to holding companies accountable for the content they host and their role in the spread of disinformation.
Musk, who has repeatedly criticised European regulations, has vowed to challenge the potential penalty in a public court battle, which could escalate the situation further. The EU has made it clear that its approach is independent of broader political disputes, such as those surrounding tariffs and trade tensions with the US, including those sparked by Trump’s new levies. However, the case against X has the potential to significantly strain relations between the EU and the US, particularly if Musk decides to resist the EU’s demands.
