EU Targets Musk’s X with Potential $1B Fine for Violating Digital Services Act
Do Son 
Following prior investigations and penalties under the Digital Markets Act against companies including Google, the European Union has now turned its attention to Elon Musk’s platform, X, which may become the first online platform to face fines under the Digital Services Act (DSA). The potential penalty is estimated to exceed $1 billion and may also require functional adjustments to the platform’s services.
According to reports from The New York Times, citing informed sources, X is under scrutiny by the EU for possible violations of the DSA—a probe initiated in 2023. Authorities reportedly concluded last year that the platform failed to comply with the DSA within the EU. Allegations include insufficient regulation of disinformation, lack of transparency for advertisers, failure to adequately verify the identities of paid users granted the blue checkmark, and overall vulnerabilities arising from misuse and foreign interference. Furthermore, the platform’s lenient stance toward AI-generated content, coupled with the absence of robust content moderation mechanisms, contributed to the assessment that X had violated the act, thereby prompting impending sanctions.
Details of the penalties are expected to be formally announced this summer, potentially marking X as the first entity fined under the DSA.
Given that X is privately owned by Elon Musk, the EU may calculate the fine based on the total revenue of his privately held ventures, possibly including companies like SpaceX. This approach could elevate the total penalty beyond the $1 billion threshold.
In response, X has condemned the EU’s actions, characterizing them as an attack on free speech and an unprecedented act of political censorship. The company emphasized its intent to vigorously defend its position and safeguard freedom of expression for users across the European region.
Previously, the EU has investigated and fined tech giants such as Meta, Apple, Google, and Amazon, demanding various adjustments to address issues ranging from monopolistic practices to harm to user rights and hindrance of competition for local businesses within the Union.
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