European Union regulators are preparing major penalties against X, including a fine that could exceed $1 billion, according to a New York Times report yesterday.
The European Commission determined last year that Elon Musk’s social network violated the Digital Services Act. Regulators are now in the process of determining what punishment to impose.
“The penalties are set to include a fine and demands for product changes,” the NYT report said, attributing the information to “four people with knowledge of the plans.” The penalty is expected to be issued this summer and would be the first one under the new EU law.
“European authorities have been weighing how large a fine to issue X as they consider the risks of further antagonizing [President] Trump amid wider trans-Atlantic disputes over trade, tariffs and the war in Ukraine,” the NYT report said. “The fine could surpass $1 billion, one person said, as regulators seek to make an example of X to deter other companies from violating the law, the Digital Services Act.”
X’s global government affairs account criticized European regulators in a post last night. “If the reports that the European Commission is considering enforcement actions against X are accurate, it represents an unprecedented act of political censorship and an attack on free speech,” X said. “X has gone above and beyond to comply with the EU’s Digital Services Act, and we will use every option at our disposal to defend our business, keep our users safe, and protect freedom of speech in Europe.”
Penalty math could include Musk’s other firms
The Digital Services Act allows fines of up to 6 percent of a company’s total worldwide annual turnover. EU regulators suggested last year that they could calculate fines by including revenue from Musk’s other companies, including SpaceX. Yesterday’s NYT report says this method is still under consideration:
