European Union regulators are preparing to levy what could be a billion-dollar penalty against X, the social media platform owned by Elon Musk, for violating the Digital Services Act (DSA), according to The New York Times.
The impending punishment could also include mandatory policy changes regarding X’s content moderation, sparking new tensions in trans-Atlantic relations. Musk has criticized the EU’s stance as censorship, setting the stage for a possible legal showdown.
Looming fines and alleged rule violations
Officials in Brussels are investigating claims that X has done too little to address hate speech, disinformation, and other forms of illicit content on the platform. The EU argues that X failed to share crucial data about the spread of false information with external researchers and refused to enhance transparency around advertisers and user verifications.
In addition, regulators allege that X has not taken adequate steps to authenticate accounts that pay for “verified” status, potentially exposing the site to manipulation by bots or foreign interference.
This upcoming penalty would be the first enforcement of the Digital Services Act, which obligates major tech companies to clamp down on illegal material and improve their operational transparency.
The fine under consideration could exceed $1 billion, The New York Times reported, although the EU typically does not impose the maximum statutory penalty. Another factor is the potential to include Elon Musk’s broader business interests, such as revenue from SpaceX, in the penalty calculation.
Trade tensions and a wider EU crackdown
Some analysts speculate that officials initially slowed their investigation into X after Donald Trump’s electoral victory, as they were concerned about a diplomatic fallout. With fresh trade disputes now underway—particularly involving tariffs—the EU has opted to move forward. Despite concerns about fueling U.S.-EU tensions, a Commission spokesperson insisted that the bloc’s laws are enforced “fairly and without discrimination toward all companies,” declining to comment on the X probe specifically.
X, for its part, characterized the anticipated measures as “an unprecedented act of political censorship and an attack on free speech in Europe,” emphasizing it would vehemently fight any punishment. This combative posture aligns with Musk’s past statements: in July, he indicated he would welcome a “very public battle in court” over EU demands.
The X case is part of a broader European effort to impose greater responsibility on Big Tech. Meta (formerly Facebook) and Apple are also targeted under the Digital Markets Act (DMA), which aims to open up competition and curb monopolistic behaviors. Meta faces additional scrutiny under the DSA for allegedly failing to safeguard minors.
Two-pronged EU probe into X
In addition to the forthcoming fine and regulatory directives, the EU has launched a second, more extensive probe into X’s moderation methods. Officials say that X’s permissive stance has transformed it into a haven for hate speech and disinformation, potentially undermining democratic systems across the 27-member bloc.
This second phase of the investigation could lead to even further sanctions and obligations for the platform. Some fear that heavy-handed penalties could provoke retaliatory U.S. tariffs or create friction in negotiations over issues ranging from e-commerce to digital privacy.
Meanwhile, critics of X’s moderation approach argue that the platform has become notably more chaotic since Musk took over, pointing to amplified divisions, unchecked harassment, and repeated spikes in misinformation.
EU regulators, however, remain firm in their determination to enforce the DSA. They emphasize that any settlement or compromise would require X to make tangible adjustments to its service. Should X refuse or persist in ignoring the law, Musk could find his platform effectively locked into a legal standoff, further complicating the already delicate ties between Europe and the United States.
