The European Union is considering levying a $1 billion fine against Elon Musk’s X, alleging that the social media company has violated its...
The European Union is considering levying a $1 billion fine against Elon Musk’s X, alleging that the social media company has violated its law against disinformation and illicit content, The New York Times reported.
Along with the hefty fine, the E.U. would also demand that X make changes to its product, according to the Times, which cited “four people with knowledge of the plans.” If the E.U. moves forward, it would be the first fine imposed by the body using its Digital Services Act (DSA). The DSA “regulates online intermediaries and platforms … to prevent illegal and harmful activities online and the spread of disinformation.”
The social media company formerly known as Twitter, which Musk said he took over to restore free speech, responded to the potential enforcement of the E.U.’s social media law, saying the move would be “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 company added.
X CEO Linda Yaccarino added, “This would be an egregious example of regulatory overreach. X continues to fight the attempts to stifle free speech taking place around the world, whether on our platform or off. We’re committed to protect this fundamental right for our users.”
Last July, the E.U. concluded that X violated the DSA “in areas linked to dark patterns, advertising transparency and data access for researchers.” In its report, the E.U. claimed that X verifies accounts and hands out “Blue checkmarks” in a way that “deceives users.”
“Since anyone can subscribe to obtain such a ‘verified’ status, it negatively affects users’ ability to make free and informed decisions about the authenticity of the accounts and the content they interact with,” the E.U. said.
The E.U. also accused X of failing to provide adequate transparency in advertising and failing to hand over its public data to researchers “in line with the conditions set out in the DSA.”
E.U. regulators reportedly hit the brakes on the investigation into X to discuss potential ramifications for going after a company controlled by one of President Donald Trump’s closest advisers and top donor. The E.U. has also been in the crosshairs of the Trump administration as Vice President JD Vance called out the bloc during a speech in February, slamming the E.U. for its digital censorship.
The Times reported that Musk’s social media company could still settle the dispute with the E.U., but that would likely require X to make changes to satisfy the governing body. If X chooses to fight the fine, it’s unclear how the legal process would play out between the American social media company and the E.U. The bloc is also going after U.S. tech companies Meta and Apple for allegedly violating the DSA.