European regulators are considering a proposal to fine Elon Musk’s X social network more than $1 billion as they weigh the risks of a standoff with Musk and U.S. President Donald Trump, the New York Times reports.
Image source: Alexandre Lallemand / unsplash.com
Platform X faces a hefty fine for violating the law on prohibited content and disinformation, four sources told the newspaper. The measure is likely to increase tensions between Europe and the US, because Musk remains one of Trump’s closest advisers. In addition to the fine, the punishment will include an order to change the product. The measures are expected to be announced this summer, in the first case of enforcement under a new EU law designed to force social media companies to exercise tighter control over their platforms.
Now, European authorities are trying to decide how much of a fine to impose on social network X — they are trying to assess the risks of further escalating the standoff with Trump, who is tightening trade rules and imposing tariffs. The fine could exceed $1 billion because European regulators want to make the measure exemplary and force other companies to take compliance with the Digital Services Act more seriously.
The investigation into X is moving ahead independently of the tariff negotiations, according to European officials — it was initiated in 2023, and last year regulators issued a preliminary ruling that the platform had broken the law. Regional authorities and X’s administration may yet reach an agreement if the company agrees to make changes that will allay the agencies’ concerns. The second investigation concerns X’s moderation policy: according to European officials, the administration’s laissez-faire approach has turned the platform into a breeding ground for hatred, disinformation, and other illegal content that is believed to undermine democracy in the 27-nation community.
Image source: Alexandre Lallemand / unsplash.com
The European Commission has said that no fine of more than $1 billion is being prepared for X. The company, however, has issued a statement saying that enforcement action against it would be “an unprecedented act of political censorship and an attack on free speech,” and that it will do everything to protect its business and “defend free speech in Europe.” Musk has previously criticized European policies as a form of censorship, and has stated his readiness to defend his point of view in court, and European officials know this. After Trump’s election, the EU suspended its investigation into X, and reopened it when trade tensions with the U.S. escalated.
Last year, European regulators found that X was breaking the law by failing to share data with outside researchers, making it difficult to study how misinformation and illegal content spread on the platform; failing to be transparent with advertisers; and not thoroughly vetting users before issuing them a “blue checkmark” of verification, leaving the social network vulnerable to abuse and foreign interference.
The exact amount of the fine X will face will be announced along with the punishment decision. The law provides for an amount of up to 6% of global annual turnover, but regulators rarely achieve the maximum amount. Unlike public Google, Meta
, Apple and Amazon, X is private and belongs exclusively to Musk. In this case, officials can turn to the part of the law that allows the fine to be compared with other companies controlled by the owner, such as SpaceX. As a result, the fine could actually grow to $1 billion.
The European Commission could also fine Meta and Apple for allegedly violating the Digital Markets Act, which is designed to improve competition in the tech industry. Meta is also under scrutiny over its measures to protect minors. Europe’s tough stance on the American tech industry may have played a role in the tariffs that Trump imposed on most countries this week. In February, the White House warned the EU that it would scrutinize both laws to see if they unfairly pressure American companies.