The European Union is said to plan imposing significant penalties on Elon Musk’s social media site, X, for violating a crucial law aimed at fighting disinformation and illegal content online. The New York Times, citing four people who were familiar with the situation, reported that the penalties would be a sizable fine as well as calls for changes in some features of the site.
This would be the first enforcement action under the EU’s recently enacted Digital Services Act (DSA)—a broad law that makes digital platforms liable for their hosted content. The ultimate ruling is slated for release this summer.
A source explained to The Times that “the penalty could exceed $1 billion,” as EU regulators look to make a strong statement and discourage other technology platforms from disregarding the law. Negotiations continue on the final figure, particularly considering the geopolitical implications, such as continuing tensions with the previous U.S. President Donald Trump over trade, tariffs, and Ukraine.
The probe into X started in December 2023, after complaints that the platform had failed to act on illegal content and disinformation. The EU is looking into whether the platform used its algorithm to promote far-right content and amplify certain political voices.
In an initial judgment last year, the regulators held that X had breached the DSA, as per Reuters. The European Commission completed its preliminary investigation in January 2024 and is currently considering imposing a hefty fine. German publication Handelsblatt, quoting high-ranking EU officials, reported the financial sanctions may amount to millions of euros.
As part of its ongoing probe, the European Commission requested X to provide internal documents about its algorithmic “recommender system”—the process that selects and recommends content to users. The firm had until February 15 to do so.
A Commission spokesperson said the EU enforces its rules “equitably and without discrimination,” while maintaining international standards. They refused to provide individual comments about X.
In spite of mounting criticism, officials suggested that a settlement is still possible—if X commits to making significant changes to resolve the issues. The New York Times reported that unnamed EU officials said negotiations were still on the table.
At the same time, X is also subject to another, EU-wide investigation of its content moderation policies. Regulators are gathering evidence that implies X’s permissive policies have enabled harmful content—disinformation, hate speech, and other illicit material—to thrive and hence disrupt democratic processes within the EU’s 27 member states.
This enforcement move can ignite a court fight. Musk has repeatedly criticized EU regulations, once calling them censorship. On receiving the EU’s first report in July 2023, Musk indicated that he will take any penalties to court. Brussels officials are bracing for resistance, and the case can become fiery if X doesn’t alter.
The X case is being viewed as a make-or-break test of the DSA’s applicability and effectiveness. The law requires tech platforms to implement more robust moderation practices and enhance transparency. The act, however, has ignited heated controversy. In February, U.S. Senator JD Vance likened EU enforcement to “digital censorship.”
X has not made a formal statement on the investigation or possible fines.
