X Could Be Hit With Billions in Fines Under EU’s New Digital Laws

Elon Musk’s X (formerly Twitter) is reportedly set to face huge fines from the European Commission for non-compliance with Brussels’ digital regulation policies.

EU May Weigh in Revenue from Musk’s Other Companies to Decide the Fine

Under the newly enforced Digital Services Act (DSA), the EU is likely to hold Musk’s X accountable for failing to moderate content that spreads disinformation or promotes illegal activity. The act gives the Commission the authority to fine the platform up to 6% of its total annual revenue.

Since X isn’t publicly traded and is fully owned by Musk, the EU might look at the annual revenues of his other privately held companies, too, to penalize the platform. If imposed, this would be the first penalty under the new law.

Elon Musk has been a close advisor to U.S. President Donald Trump, and the EU is aware of it. The bloc will look to impose a fine that sends a strong message about compliance with the law, while also being careful not to strain diplomatic relations with the U.S.

While the news wasn’t officiated when it broke, X’s Global Government Affairs account stated that the reports are accurate and that the platform will try and use every option to “protect freedom of speech in Europe.“

This isn’t the first time X is in hot waters with the DSA. Two years ago, in 2023, the EU’s preliminary investigation into the platform found some shady business practices. For one, the findings stated that the revamped verification system, where users could pay for the blue checkmark, which the EU deemed misleading in how it represented the authenticity of information on the platform.

On top of that, it was found that X was blocking independent researchers from accessing public platform data (like scraping tweets). Both of these actions were flagged as clear violations of the Digital Services Act.