BUSINESS
Elon Musk’s X may face a record-breaking USD 1 billion EU fine for violating the Digital Services Act with...
Elon Musk's social media platform X (formerly Twitter) is likely to face a massive fine from the European Union (EU), which could go beyond USD 1 billion. This would make it one of the biggest penalties ever under the EU’s new tech law, the Digital Services Act (DSA). According to The New York Times, the fine may be officially announced this summer.
What makes this case even more unique is that EU regulators are reportedly thinking of including revenue from Musk’s other companies, like SpaceX, while deciding the amount of the fine. If that happens, the penalty could go even higher. Unlike big tech companies like Google, Apple, or Meta, which are publicly listed, X is privately owned by Musk, which adds more legal complications.
Apart from the financial penalty, X might also be asked to make serious changes in how it works in Europe. This could include stricter rules on content moderation, how it shows ads, and how it manages risks online.
In response, X strongly pushed back. On its Global Government Affairs account, the company called the fine "an attack on free speech" and "political censorship." X added that it has worked hard to follow EU rules and will fight to protect its business and users' rights.
This issue comes as tensions rise between Europe and the US over how tech companies should be regulated. While some reports say the EU might go easier on companies like Apple and Meta, X seems to be facing harsher treatment.
The EU began investigating X in late 2023 to check if it had broken rules related to content moderation, ad transparency, risk control, and the spread of misinformation, especially regarding Israel’s war in Palestine. The EU also looked at how X's "Community Notes" feature works and whether it does enough to stop false content.
Earlier this year, X was told to share internal files, like how its algorithms work and how data is shared with researchers.
But that’s not all.
X is also dealing with legal trouble in India. The company has taken the Indian government to court, saying that authorities are forcing content takedowns without proper legal process. X also refused to join "Sahyog"—a government system to manage content removal requests—calling it a “Censorship Portal.” The Indian government hit back, saying X was misrepresenting the platform.
These legal battles are happening while Musk's other companies—Tesla and SpaceX—are trying to get approval to enter the Indian market. Tesla wants to sell electric cars, and SpaceX hopes to launch its Starlink internet service in India with the help of Jio and Airtel.
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