EU delays investigation into Musk's X amid trade negotiations with US

The European Commission will miss its probe deadline before the summer recess, with a decision now expected after more clarity emerges from ongoing EU-US trade negotiations

 

The European Commission has delayed one of its ongoing investigations into Elon Musk’s social media platform X for violating digital transparency rules, The Financial Times reported on Thursday. The delay coincides with the EU’s ongoing trade discussions with the United States.

 

The Commission, which is responsible for overseeing trade on behalf of the European Union, will not meet the deadline to conclude the probe before its summer recess. A decision on the matter is now expected after greater clarity emerges from the EU-US trade negotiations.

 

X in breach of EU's digital content rules

 

Last year, EU technology regulators said that X had violated the Digital Services Act (DSA) — a regulation that compels major online platforms and search engines to take stronger action against illegal content and threats to public safety. Companies found in violation can face penalties of up to 6 per cent of their global turnover. Repeat offenders could potentially be banned from operating within the EU altogether.

 

 

The probe into X followed a seven-month investigation that identified issues with the platform’s use of the 'blue checkmark'. The Commission said X’s approach “deceives users” and is inconsistent with established industry practices.

 

Investigation into X remains active

 

The Commission stated that since anyone could subscribe to obtain a ‘verified’ status, it undermined users’ ability to freely and accurately assess the authenticity of accounts and the content they engage with. It added that there was evidence of malicious actors deliberately misusing the ‘verified account’ status to mislead users. ByteDance’s TikTok, AliExpress and Meta Platforms are also being investigated under the DSA framework.

 

An EU spokesperson said that the investigation into X remains open, adding that the enforcement of the legislation is independent of the current ongoing negotiations.

 

EU-US trade tensions

 

The delay in the investigation comes as EU trade commissioner Maros Sefcovic prepares to meet with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer for high-stakes tariff discussions. US President Donald Trump has threatened to impose a 30 per cent tariff on EU imports starting August 1—a move the EU deems unacceptable and damaging to trade relations between two of the world's largest economies. The EU warned of countermeasures if no agreement is reached.

 

Bracing for a breakdown in talks, the European Commission has prepared a retaliatory tariff package targeting $83.6 billion worth of US exports, including Boeing aircraft, bourbon whiskey, and automobiles.