The EU is checking X (Twitter): will there be a fine for Elon Musk’s company?

4 April 2025 19:46

The European Union has targeted Elon Musk’s social network X with a potential billion-dollar fine under the Digital Services Act. This is reported by "Komersant Ukrainian" with reference to The NYT.

The European Union is preparing to take decisive action against Elon Musk’s social network X (formerly Twitter), signaling a growing intolerance for non-compliance among large technology companies operating in Europe. The EU is reportedly ready to impose a fine of more than $1 billion for X’s alleged failure to comply with its obligations under the new Digital Services Act (DSA), which aims to restrict the activities of online platforms.

What does the DSA provide for?

The Digital Services Act, which came into force in 2023, is part of a broader EU strategy to ensure that digital platforms are held accountable for the content they host. It requires large platforms such as X, Facebook and TikTok to:

  • quickly remove illegal content (e.g., hate speech or terrorist propaganda)
  • limit the spread of disinformation;
  • ensure algorithmic transparency;
  • ensure user safety through effective moderation policies.

Failure to comply with these provisions may result in fines of up to 6% of the company’s global turnover.

Why the EU plans to fine Elon Musk and the X social network

According to EU investigators, the social network has not implemented adequate systems to monitor and remove harmful content. Following Elon Musk’s acquisition of the platform in late 2022, there was a significant reduction in the number of moderators and an emphasis on “absolutizing freedom of speech,” which, according to the EU, allowed disinformation and hate speech to spread uncontrollably.

In particular, the EU is concerned that the social network X:

  • failed to adequately counter coordinated disinformation campaigns;
  • allowed algorithmic amplification of hateful content;
  • failed to provide sufficient transparency in content removal processes.

The investigation found that these shortcomings could have a serious impact on public discourse, electoral integrity and public security in the EU.

X is an American social network that was known as Twitter until 2023. The platform is designed to publish short text messages (posts), media content, and interact with the audience in real time. In October 2022, the company was acquired by Elon Musk for $44 billion, after which it underwent significant changes.

What can a fine mean?

If the EU imposes a fine exceeding $1 billion, it will be one of the largest penalties ever imposed under the Association Agreement. The Commission could also oblige X to implement a

  • a verified moderation system,
  • more oversight of content labeled as illegal;
  • regular audits and transparency reports.

The amount of the fine is not only based on X’s revenues, but may also take into account Elon Musk’s broader corporate portfolio, including Tesla and SpaceX, if the EU authorities determine that these assets are strategically linked to the enforcement action.

Reaction of X social network representatives to EU criticism

In a public statement, X’s global government relations team dismissed the potential fine as “an unprecedented act of political censorship.” The company maintains that it actively complies with EU regulations and claims that the proposed penalty is politically motivated.

They also stated that they will explore legal avenues to challenge the EU’s actions and emphasized their commitment to protecting freedom of speech.

Read also: Cyberattack on the X network: Elon Musk blames Ukraine

Why it matters

The EU’s actions reflect a broader global trend where governments are seeking to hold technology platforms accountable for the role they play in shaping online discourse. The situation is also testing the limits of regulatory enforcement when it comes to high-profile tech billionaires such as Elon Musk, who often view regulation of platforms as an attack on individual freedoms.

Observers note that the outcome could set a legal precedent for how digital platforms interact with European law and what level of content oversight is considered acceptable. It could also affect how other jurisdictions, including the US, Canada, and Australia, approach technology regulation in the future.

Will social network X receive a billion-dollar fine?

The European Commission has not yet officially announced the fine, and negotiations may still be ongoing. However, the threat of such a significant fine has already attracted the attention of the international community and may force X to reconsider its content moderation policy in Europe.

If X refuses to comply, the EU has the right to step up enforcement measures, including banning the platform as a last resort, although such a step would be unprecedented and politically controversial.

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Мандровська Олександра
Editor

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