Elon Musk’s X May Face Over $1 Billion in Fines Over Alleged EU Law Violations
Elon Musk’s social media platform X is reportedly facing potential fines exceeding $1 billion for allegedly breaching the European Union’s Digital Services Act (DSA), according to The New York Times, which cites sources close to the matter.
The DSA, implemented in 2022, is aimed at tackling illegal and harmful content across major digital platforms. The European Commission launched formal proceedings against X in 2023. One key issue involves the sale of verification checkmarks, which regulators say mislead users — a practice they argue runs afoul of the law. Musk previously dismissed the criticism, claiming, “The DSA IS misinformation!”
This case marks the first enforcement action under the DSA, and the Commission reportedly wants to send a strong message with its handling of X — while also being cautious not to further strain ties with former President Donald Trump, who is said to be working closely with Musk on a newly formed Department of Government Efficiency (DOGE). A decision could come by summer, potentially requiring X to revise certain features alongside any financial penalties.
The European Union is also examining whether X’s loose content moderation policies are enabling the spread of hate speech and disinformation, the Times reports.
Under DSA guidelines, penalties can reach up to 6% of a company’s global turnover. Given X is owned outright by Musk, EU regulators are considering whether to factor in the revenue from Musk’s other ventures, including SpaceX, when calculating any fines. X may still avoid penalties if it complies with the Commission’s demands.
In response, X’s global affairs team released a statement condemning the potential actions: “If the reports are accurate, this would represent a new level of political censorship and a direct threat to free expression. X has made significant efforts to comply with the DSA, and we will explore all avenues to protect our platform, safeguard our users, and defend free speech in Europe.”
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