TLDR
- European Union regulators are reportedly considering a potential $1 billion fine against Elon Musk’s X for alleged violations of the Digital Services Act
- The fine calculation may include revenue from Musk’s other companies like Tesla and SpaceX
- X’s Global Government Affairs team called the potential fine “an unprecedented act of political censorship”
- The EU investigation began in 2023, with a preliminary ruling in July 2024 finding X violated rules on data access, transparency, and user verification
- Beyond the fine, EU regulators may demand product changes, with penalties expected to be announced this summer
European Union regulators are preparing to impose a fine that could exceed $1 billion on Elon Musk’s social media platform X for alleged violations of the Digital Services Act (DSA), according to multiple reports. The potential penalty stems from a lengthy investigation into how the platform handles illegal content and disinformation.
If the reports that the European Commission is considering enforcement actions against X are accurate, it represents an unprecedented act of political censorship and an attack on free speech. X has gone above and beyond to comply with the EU’s Digital Services Act, and we will…
— Global Government Affairs (@GlobalAffairs) April 4, 2025
The New York Times first reported the news, citing four people with knowledge of the regulators’ plans. These sources indicated that EU authorities intend to use a section of the DSA to calculate the fine based not just on X’s revenue, but also incorporating income from other companies Musk controls, including Tesla and SpaceX.
The Digital Services Act and X’s Alleged Violations
The Digital Services Act, which became law in October 2022, was designed to police social media companies and prevent illegal and harmful activities online. Under this regulation, companies can face fines of up to 6% of their global revenue for violations.
The EU investigation into X began in 2023. A preliminary ruling in July 2024 found that the platform had violated the DSA by refusing to provide data to outside researchers. The ruling also cited inadequate transparency about advertisers and failure to verify the authenticity of users with verified accounts.
X has disputed these findings. The company’s Global Government Affairs team issued a statement saying that if the reports about the EU’s plans are accurate, it “represents an unprecedented act of political censorship and an attack on free speech.”
“X has gone above and beyond to comply with the EU’s Digital Services Act, and we will use every option at our disposal to defend our business, keep our users safe, and protect freedom of speech in Europe,” the team added.
Broader Implications and Timeline
The penalties, which are expected to be announced this summer, may include not only the monetary fine but also demands for changes to X’s platform. The full scope of any penalties will likely be revealed in the coming months.
A settlement could potentially be reached if X agrees to changes that satisfy EU regulators, according to the Times. However, one of the officials who spoke to the publication indicated that X is facing a second investigation as well.
This additional probe alleges that X’s approach to policing user-generated content has made it a hub for illegal hate speech and disinformation. If substantiated, these allegations could result in further penalties for the platform.
Musk previously claimed that EU regulators had offered him a deal. He alleged that he was told if X secretly suppressed certain content, the platform would escape fines. Thierry Breton, the former EU commissioner for internal market, denied this claim in a July 2024 post on X.
Be our guest @elonmusk ⚖️🇪🇺
There has never been — and will never be — any “secret deal”. With anyone.
The DSA provides X (and any large platform) with the possibility to offer commitments to settle a case.
To be extra clear: it’s *YOUR* team who asked the Commission to… https://t.co/8Wo7DXdap0
— Thierry Breton (@ThierryBreton) July 12, 2024
Breton stated there was no secret deal and that X’s team had asked for the “Commission to explain the process for settlement and to clarify our concerns.” He said the Commission’s response was in line with “established regulatory procedures.”
In response, Musk said he was looking “forward to a very public battle in court so that the people of Europe can know the truth.”
European officials are reportedly taking into account potential backlash from both Musk and U.S. President Donald Trump as they finalize their decision on penalties. This consideration comes amid broader tensions between the EU and the US regarding trade, tariffs, and other international issues.
A spokesperson for the European Commission declined to comment specifically on this case when approached by The New York Times. However, they did state that the Commission would “continue to enforce our laws fairly and without discrimination toward all companies operating in the EU.”
The outcome of this case could have major implications for how social media platforms operate within the European Union and may set precedents for future enforcement of the Digital Services Act.
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