European Union (EU) regulators are preparing to impose a substantial penalty on Elon Musk’s social media platform, X, for alleged violations of the Digital Services Act (DSA), according to a report by Reuters. The enforcement, expected to be announced this summer, will mark the EU’s first significant action under the DSA legislation designed to curb illegal content, and disinformation, and ensure responsible platform governance.
Sources familiar with the matter revealed that the penalties could include a hefty financial fine potentially exceeding $1 billion—and mandatory product modifications aimed at improving X’s content moderation systems. Regulators have been debating the scale of the fine to strike a balance between upholding the DSA and avoiding further strain in transatlantic relations, especially amid ongoing disputes over trade, tariffs, and the war in Ukraine.
The investigation into X began in 2023, with EU regulators issuing preliminary findings last year, concluding that the platform had failed to meet DSA obligations. The law mandates that large online platforms must actively police their content and prevent the spread of harmful material, including illegal hate speech and misinformation.
A spokesperson for the European Commission stated, “We have always enforced and will continue to enforce our laws fairly and without discrimination toward all companies operating in the EU, in full compliance with global rules.” However, the Commission declined to comment specifically on the X investigation.
Although a settlement could still be reached if X agrees to address regulatory concerns, the platform is also facing a broader, ongoing EU investigation. Two sources indicated this second probe focuses on claims that X’s lax content moderation has enabled it to become a hub for illegal content, posing risks to democratic discourse within the EU.
The outcome of these investigations may set a precedent for how tech giants are regulated in Europe, reinforcing the EU’s stance on digital accountability and platform responsibility in the modern information age.
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