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Elon Musk’s X could face fines of over $1 billion for alleged violations of Europe's Digital Services Act (DSA), The New York Times reports, citing four people familiar with the matter.
The DSA dates back to 2022 and looks to curb "illegal and harmful content" on major internet platforms. Formal proceedings against X began in 2023. Last year, the European Commission informed X that selling verified checkmarks violates the DSA because they "deceive users." (At time, Musk said, "The DSA IS misinformation!”)
This would be the first DSA-related action, according to the Times, which notes that the commission is trying to balance making an example of X while not further inflaming tensions with President Trump, who is now working closely with Musk on the Department of Government Efficiency (DOGE). Penalties could be announced this summer and might also require X to make changes to some of its features.
The EU is also investigating whether X's lax content-moderation policies are turning it into a hate speech and disinformation machine, the Times says.
Under the DSA, a company could be fined up to 6% of its global revenue. In the case of X, since it's wholly owned by Elon Musk, the EU is evaluating the possibility of calculating the fine by combining the revenue of all companies owned by Musk, including SpaceX. X could potentially avoid fines by making changes requested by the EU.
“If the reports that the European Commission is considering enforcement actions against X are accurate, it represents an unprecedented act of political censorship and an attack on free speech,” said X’s global affairs team in response to the new report. “X has gone above and beyond to comply with the EU’s Digital Services Act, and we will use every option at our disposal to defend our business, keep our users safe, and protect freedom of speech in Europe.”