EU plans major fine for Musk's X over disinformation, may exceed $1 billion

The penalties, expected this summer, may include a hefty fine and product changes, marking the first enforcement under the EU's Digital Services Act to regulate social media content

European Union (EU) regulators are likely to impose major penalties on Elon Musk-owned social media platform, X, for breaching a key law designed to combat illicit content and disinformation, according to a report by The New York Times. The move is expected to escalate tensions between the EU and the United States, as Musk is a close adviser to US President Donald Trump.

 

Fines and product changes expected

The penalties, which are anticipated to be announced this summer, will likely include a substantial fine and mandated product modifications, the report said. These would mark the first enforcement actions under the Digital Services Act (DSA), a newly implemented EU law aimed at holding social media companies accountable for content regulation.

 

 

Potential $1 billion fine

Regulators are deliberating over the scale of the fine, weighing the potential consequences of further straining trans-Atlantic relations, especially in light of ongoing trade and tariff disputes and the war in Ukraine. The news report quoted a source as saying that the fine could exceed $1 billion, as EU officials aim to set a precedent that deters other tech companies from violating the DSA.  ALSO READ | Trump slaps 44% tariff on quake-hit Myanmar, fuelling economic fears

 

Despite rising diplomatic tensions, EU officials asserted that their investigation into X is proceeding independently of recent tariff negotiations initiated by Trump. The inquiry, which began in 2023, led to a preliminary ruling last year stating that social media platform X had violated the law.

 

Possibility of a settlement

A resolution remains possible if X agrees to implement changes that address regulatory concerns, officials said. However, the platform faces another, broader EU investigation that could result in additional penalties. The report said that this separate probe is focused on whether X’s approach to user-generated content has fostered an environment for illegal hate speech, disinformation, and other materials undermining democratic values across the 27-nation bloc.

 

A spokesperson for the European Commission, the EU’s executive branch, reiterated the bloc’s commitment to fair enforcement. “We have always enforced and will continue to enforce our laws fairly and without discrimination toward all companies operating in the EU, in full compliance with global rules,” the spokesperson said as quoted by the news report.