European Union set to impose heavy fines of over $1 billion on Elon Musk’s X: Report
European Union regulators are preparing to issue major penalties against billionaire Elon Musk’s social media platform X for violating a key law aimed at tackling illegal content.
And disinformation, The New York Times reported, which cited four sources familiar with the matter. The report said the penalties are expected to include a substantial fine and demands for changes to the platform’s features. These actions are likely to be officially announced this summer and would mark the first enforcement under the EU’s new Digital Services Act, which requires social media companies to moderate content more actively.
The move could heighten tensions with the United States, as it targets one of US President Donald Trump’s closest allies.
EU regulators are still debating the size of the fine, mindful of the wider geopolitical implications — including current tensions with Trump over trade policies, tariffs, and the war in Ukraine. According to one source quoted in the report, “the penalty could exceed $1 billion,” as the EU aims to send a strong message and deter other tech companies from violating the law.
Why and when did EU launch its investigation into X?
X has been under investigation since December 2023 for potential violations of the EU’s Digital Services Act (DSA) regarding its handling of illegal content and information manipulation. The platform has faced accusations of manipulating its systems to amplify far-right content and give certain political figures more visibility.
EU officials said that the investigation into X is proceeding independently of President Trump’s recent trade tensions and tariff announcements. In 2023, regulators issued a preliminary ruling that X had breached the law, according to Reuters.
According to a Reuters report, the European Commission completed its initial probe into X in January this year and is now considering imposing a substantial fine. Handelsblatt, citing high-ranking EU officials, reported that the decision could involve millions of euros.
The European Commission has requested that X provide internal documents related to its algorithms, specifically the “recommender system” that suggests content to users, with a deadline for submission by February 15.
‘Settlement is still a possibility’
According to unnamed officials quoted by The New York Times, the EU and X may still reach a settlement if the company agrees to make changes that address regulators’ concerns.
X is also facing a separate, broader EU investigation that could lead to additional penalties. In this investigation, EU officials are building a case that X’s lax approach to moderating user-generated content has allowed illegal hate speech, disinformation, and other harmful material to proliferate, undermining democracy across the 27-nation bloc.
A spokesperson for the European Commission said that the EU enforces its laws fairly and without discrimination, ensuring full compliance with global standards. However, they declined to comment specifically on X.
X did not respond to a request for comment.
Brussels officials anticipate that Musk, who has criticised EU policies as a form of censorship, will likely resist any regulations. Following the EU’s preliminary findings last July, Musk expressed his intent to challenge any penalties in court, signalling a potential legal battle.
This could lead to a significant standoff. If Musk refuses to comply with EU demands for changes, it may escalate into a confrontation over how to enforce compliance with X.
The investigation into X is being closely watched as the first major test of the Digital Services Act, which requires companies to better regulate their platforms and ensure transparency. The law has sparked debates, with Vice President JD Vance comparing EU regulation to digital censorship in February.