European Union Set to Impose Heavy Penalties on Elon Musk’s X: Report

European Regulators are reportedly planning to take strict action against social media platform X for violating the Digital Services Act (DSA), a major EU regulation focused on tackling harmful content and promoting transparency online, according to media reports. 

The platform could face a fine exceeding $1 billion, along with enforced changes to how it handles content and user policies. These would mark the first penalties issued under the DSA since it came into effect.  

As per the media reports, the official announcement is expected later this summer, with EU authorities still finalising the scale of the fine. Officials are also said to be considering the wider diplomatic impact, especially amid ongoing international tensions related to trade disputes and geopolitical conflicts. 

ALSO READ: Trump, Vance, and the White House: What’s Next for Elon Musk After DOGE?

X Under EU Investigation for DSA Breach:  

Since late 2023, social media platform X has been under investigation by European regulators for potential violations of the Digital Services Act (DSA), particularly concerning its handling of harmful and misleading content. The investigation focuses on whether the platform has failed to meet its responsibilities in moderating illegal content and misinformation. 

Media Reports suggest that European authorities had already reached an initial assessment by the end of 2023, indicating that X may have breached the DSA. A separate and broader investigation is also underway, which looks into concerns that insufficient content moderation on the platform could be contributing to the spread of hate speech and false information, potentially affecting democratic values across the EU. 

Officials have made it clear that these proceedings are not linked to any recent political developments in the US, such as trade or tariff policies introduced by President Trump. Further regulatory action may follow as the second investigation progresses. 

X Slams EU’s Expected Penalties:  

Following the media reports, social media platform X criticised the European Union's expected enforcement actions, calling them a “clear attempt at political censorship” and an “assault on freedom of expression.” The company stated that it plans to challenge any penalties and defend what it sees as the right to free speech in Europe. 

Elon Musk, who owns X, has openly opposed European digital regulations in the past, claiming they amount to censorship. After the EU shared its early findings in mid-2023, Musk responded by saying he was prepared for a “very public legal battle” to defend the platform’s policies. 

As per media reports, in response, a European Commission spokesperson said, “We apply our laws fairly and equally to all companies operating in the EU, and always in line with global standards.” However, the Commission declined to comment directly on the ongoing investigation involving X. 

ALSO READ: JD Vance Denies Reports of Elon Musk Leaving DOGE as 'Fake News'