X faces $1 billion fine from EU over DSA violations
The European Commission is reportedly preparing to impose a fine of up to $1 billion on Elon Musk’s social media platform X for violations of the Digital Services Act (DSA), according to a report by The New York Times.
The action stems from an investigation launched in 2023 into X’s content moderation practices, particularly in relation to the spread of disinformation and illegal content on the platform. The investigation followed changes to the company’s approach to moderation after Musk’s acquisition of the platform.
According to the report, the penalty is expected to include both a substantial fine and mandatory changes to the platform’s systems. The Commission’s probe reportedly focused on how effectively the platform responded to harmful content, including its use of the Community Notes feature, and its efforts to prevent the dissemination of illegal material during critical events.
In a formal announcement made last year, the Commission cited concerns over the platform's compliance with DSA obligations. It stated that a preliminary analysis, including the platform’s risk assessment report submitted in September and its transparency report published in November, indicated potential breaches of the DSA.
X has indicated it will contest any fine in court.
The case has also sparked geopolitical implications. With former U.S. President Donald Trump back in office, EU officials are reportedly conscious of the potential diplomatic fallout. Trump has previously voiced strong support for American technology companies and has criticised the DSA, calling it incompatible with U.S. free speech norms. Vice President JD Vance and the newly appointed head of the U.S. Federal Communications Commission have also expressed scepticism about EU regulations affecting U.S. firms.
A fine of this scale could prompt retaliatory measures from the U.S. administration, including increased tariffs on European imports, in response to what it views as unfair treatment of American businesses.
X, which recently merged operations with artificial intelligence firm xAI, continues to face financial challenges, with advertising revenue still significantly below pre-acquisition levels.
The Commission’s action is part of a broader enforcement push under the DSA, which also affects other tech giants such as Meta and TikTok. The X case may become a key test of both the robustness of the DSA and the limits of U.S. political support for Elon Musk’s ventures.
The European Commission has not publicly confirmed the proposed fine.
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