European Union regulators are reportedly considering a hefty $1 billion fine against Elon Musk’s social media platform, X, in connection with violations of the Digital Services Act (DSA). The fine could be calculated based on X’s global revenue, which includes not just earnings from the platform but also revenue from Musk’s other ventures, including Tesla and SpaceX, according to a recent report by The New York Times.
The DSA, which became law in October 2022, aims to regulate digital services and prevent illegal and harmful online activities. The act gives regulators the authority to impose fines up to 6% of a company’s global revenue for violations. Musk’s X is under investigation for allegedly failing to comply with several provisions of the DSA, including data transparency, advertising disclosures, and user verification.
The investigation into X’s practices started in 2023. A preliminary ruling in July 2024 concluded that the platform had failed to meet DSA requirements by not sharing data with independent researchers and not verifying users adequately. These violations have contributed to concerns about disinformation and illegal hate speech being allowed to flourish on the platform.
X has publicly responded to the investigation, with its Global Government Affairs team describing the potential fine as an “unprecedented act of political censorship” and an “attack on free speech.” The company maintains that it has made significant efforts to comply with EU regulations and intends to use all available options to defend its position.
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
While EU regulators have yet to finalize the penalties, there are indications that further product changes could be mandated. However, a settlement might be possible if X agrees to implement the necessary adjustments. The full scope of the penalties will be clarified in the coming months.
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In addition to the fine, X faces a second investigation, which could result in additional penalties if the platform’s approach to content moderation continues to fall short of EU standards. The situation underscores the growing tension between global tech giants and regulatory bodies, with Musk’s X likely facing a prolonged legal battle in the European courts.
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I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
