Brussels: The European Union is preparing to take strong regulatory action against X, the social media platform owned by Elon Musk, for allegedly violating the Digital Services Act (DSA)—a sweeping law aimed at curbing disinformation and illegal content online. According to sources familiar with the investigation, the EU intends to announce a significant financial penalty and mandate major operational changes to the platform later this summer. This would mark the first major enforcement of the DSA since it came into effect, signaling the EU’s commitment to holding digital platforms accountable for content moderation and transparency. Officials believe X has consistently failed to comply with key provisions of the law, including refusing to provide access to data for researchers, neglecting transparency around paid advertisements, and not adequately verifying the identities of users with verified accounts.
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Insiders suggest that the fine could exceed $1 billion, making it one of the largest penalties ever imposed by the EU on a tech company. The final amount is still under consideration and could be influenced by whether Musk’s other privately held ventures, such as SpaceX, are factored into the revenue calculations for the fine. In addition to the financial penalty, Brussels is expected to compel X to adopt structural changes that bring the platform in line with DSA standards. If the company fails to comply, it could face further legal consequences, escalating a potential showdown between Musk and European authorities.
X, formerly known as Twitter, has faced mounting criticism from EU regulators for what they describe as a “hands-off” approach to content moderation. A second, broader investigation into the platform is also underway, focusing on whether X has become a hub for illegal hate speech and disinformation across the 27-nation bloc. The probe began in 2023, and last year the EU issued a preliminary finding stating that X was in breach of the DSA. Musk responded defiantly, vowing to challenge any penalties in court and labeling the EU’s stance as censorship disguised as regulation. The timing of the anticipated enforcement is politically sensitive, as it coincides with renewed tensions between the EU and the United States over trade, defense, and digital policy. European regulators had initially slowed their investigation following the U.S. elections but have since decided to proceed despite potential diplomatic fallout.
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U.S. officials, including Vice President JD Vance, have voiced concerns over the DSA, characterizing it as an attack on free speech. A recent White House memo warned that EU regulations could be interpreted as discriminatory toward American companies. Beyond X, other tech giants such as Meta and Apple are also in the EU’s regulatory crosshairs. Meta is under investigation for failing to protect minors, while both Meta and Apple are expected to face penalties for violations of the Digital Markets Act, which aims to foster fair competition in the digital economy.
A spokesperson for the European Commission reiterated that enforcement efforts are impartial and adhere strictly to international standards. “We enforce our laws fairly and without bias toward any company operating in the EU,” the spokesperson said, declining to comment specifically on the X investigation. With the EU standing firm on its regulatory agenda and Musk signaling resistance, the stage is set for a potentially precedent-setting legal clash that could reshape the relationship between Big Tech and European lawmakers for years to come.