EU regulators are gearing up to impose massive fines exceeding $1 billion on Elon Musk’s X for alleged violations of a landmark law aimed at censoring online discussions.
The New York Times reports that the EU is preparing to issue major penalties against X, the social media platform owned by Elon Musk, for breaking the bloc’s groundbreaking Digital Services Act. Four people with knowledge of the plans revealed that the penalties will likely include a substantial fine surpassing $1 billion and demands for significant changes to the platform.
The decision to impose such hefty fines comes as EU regulators weigh the risks of further antagonizing Musk and U.S. President Donald Trump amid ongoing trans-Atlantic disputes concerning trade, tariffs, and the war in Ukraine. The fine, expected to be announced this summer, would be the first issued under the Digital Services Act, a law designed to compel social media companies to censor their services.
The investigation into X began in 2023, with regulators issuing a preliminary ruling last year that the platform had violated the law. The two parties could still reach a settlement if X agrees to make changes that address the regulators’ concerns — presumably by heavily censoring the platform. However, Musk has been critical of European policies and is expected to contest any regulation.
A second, broader EU investigation is also underway, which could lead to additional penalties. Officials believe that X’s hands-off approach to moderating user-generated content has made it a hub for illegal hate speech, disinformation, and other material that undermines democracy across the 27-nation bloc.
The X investigation is being closely watched as the first major test of the Digital Services Act’s enforcement. The law has become a point of contention in the trans-Atlantic debate about free speech, with U.S. Vice President JD Vance comparing EU regulation to digital censorship.
Officials have been deliberating on the exact penalty amount, which could be based on the revenue of not only X but also other companies privately controlled by Musk, such as SpaceX. This approach could result in a fine well over $1 billion.
The European Union’s aggressive stance on regulating American tech giants is not limited to X. Regulators are also expected to announce penalties against Meta and Apple for violating the Digital Markets Act, a 2022 law aimed at boosting competition in the tech sector. Additionally, Meta is under investigation for potentially violating the Digital Services Act by inadequately protecting minors on its platforms.
Read more at the New York Times here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
