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Elon Musk’s X faces potential $1 billion fine from EU regulators: Report

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  • European Union (EU) regulators are reportedly considering a major fine against Elon Musk’s social media platform X. The fine would be for violations of the Digital Services Act.
  • EU officials and Musk’s X can still reportedly make a deal to subvert the fine, but the platform would likely have to make changes.
  • European authorities accuse X of creating a haven for hateful and illicit content.

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European Union (EU) regulators are considering whether to fine Elon Musk’s social media platform X $1 billion.

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What is the fine for?

Four sources familiar with the matter told The New York Times it is for violating a new EU law banning social media companies from allowing illicit material and disinformation on their platforms.

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EU officials accuse X of failing to monitor user-generated material and, in the process, creating a safe haven for illegal hate speech, false information and other illicit content, threatening democratic values within EU nations.

What else could the violations lead to?

The penalties, which include the fine, would also reportedly require X to make changes to the platform and are expected to be announced this summer.

This would mark the first time the landmark Digital Services Act (DSA) would be used to hold a social media company responsible for content regulation.

Why is it a delicate situation?

According to a report in The New York Times on Thursday, April 3, European authorities are still considering the size of the fine and the potential risks of further damaging Europe’s relationship with the United States and President Donald Trump by targeting one of his closest allies amid trade disputes and the war in Ukraine.

EU officials, however, insist their investigation into X comes independently from any tariff negotiations after Trump announced new tariffs on European goods on Wednesday, April 2. The EU probe began in 2023, and authorities announced preliminary findings in 2024 that X broke the law.

Musk’s troubles in Europe

This isn’t Musk’s first legal battle in Europe.

As Straight Arrow News previously reported, French prosecutors investigated X in February after a lawmaker accused the platform of biased algorithms to shape discourse on the site.

X has yet to respond to the latest report, but Musk has criticized EU policies and regulations, arguing they are censoring free speech.

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[CRAIG NIGRELLI]

EUROPEAN UNION REGULATORS ARE WEIGHING WHETHER TO LEVEL A ONE BILLION DOLLAR FINE AGAINST ELON MUSK’S SOCIAL MEDIA PLATFORM X.

FOUR SOURCES FAMILIAR WITH THE MATTER TELL THE NEW YORK TIMES IT’S FOR VIOLATING A NEW E-U LAW BANNING SOCIAL MEDIA COMPANIES FROM ALLOWING ILLICIT MATERIAL AND DISINFORMATION ON THEIR PLATFORMS.

E-U OFFICIALS ACCUSE X OF FAILING TO MONITOR USER-GENERATED MATERIAL AND IN THE PROCESS CREATING A SAFE HAVEN FOR ILLEGAL HATE SPEECH, FALSE INFORMATION AND OTHER ILLICIT CONTENT, THREATENING DEMOCRATIC VALUES WITHIN E-U NATIONS. 

THE PENALTIES, WHICH INCLUDE THE FINE, WOULD ALSO REPORTEDLY REQUIRE X TO MAKE CHANGES TO THE PLATFORM AND ARE EXPECTED TO BE ANNOUNCED THIS SUMMER.

THIS WOULD MARK THE FIRST TIME THE LANDMARK LAW KNOWN AS THE DIGITAL SERVICE ACT IS USED TO HOLD A SOCIAL MEDIA COMPANY RESPONSIBLE FOR CONTENT REGULATION.

ACCORDING TO THE NEW YORK TIMES, EUROPEAN AUTHORITIES ARE STILL CONSIDERING HOW LARGE THE FINE SHOULD BE AND THE POTENTIAL RISKS OF FURTHER DAMAGING EUROPE’S RELATIONSHIP WITH THE U-S AND PRESIDENT DONALD TRUMP BY TARGETING ONE OF HIS CLOSEST ALLIES AMID TRADE DISPUTES AND THE WAR IN UKRAINE.

E-U OFFICIALS, HOWEVER, INSIST THEIR INVESTIGATION INTO X COMES INDEPENDENTLY FROM ANY TARIFF NEGOTIATIONS AFTER TRUMP ANNOUNCED NEW TARIFFS ON EUROPEAN GOODS THIS WEEK.

THE PROBE BEGAN IN 2023 AND AUTHORITIES ANNOUNCED LAST YEAR PRELIMINARY FINDINGS THAT X BROKE THE LAW.

THE E-U AND X COULD STILL REPORTEDLY REACH A DEAL IF MUSK’S COMPANY AGREES TO MODIFY ITS PRODUCT TO COMPLY WITH E-U LAW. IT’S CURRENTLY UNCLEAR WHAT KIND OF MODIFICATIONS WOULD BE REQUIRED.

THIS ISN’T MUSK’S FIRST LEGAL BATTLE IN EUROPE. 

AS STRAIGHT ARROW NEWS PREVIOUSLY REPORTED, FRENCH PROSECUTORS INVESTIGATED X IN FEBRUARY AFTER A LAWMAKER ACCUSED THE PLATFORM OF BIASED ALGORITHMS TO SHAPE DISCOURSE ON THE SITE.

X HAS YET TO RESPOND TO THE LATEST REPORT BUT MUSK HAS CRITICIZED E-U POLICIES AND REGULATIONS, ARGUING THEY ARE CENSORING FREE SPEECH.

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