European regulators are considering a proposal to fine Elon Musk’s social media platform X more than $1 billion, according to the New York Times. X faces the penalty for violating laws related to prohibited content and disinformation, four sources told the publication. This move may raise tensions between the EU and the US, given Musk’s close ties to former President Donald Trump. The proposed penalty would not only include the financial fine but also an order to modify the product. These measures would mark the first major enforcement of a new EU law aimed at holding social media companies accountable for platform content. We’ll keep you updated as the situation develops.
The final amount of the fine is still being discussed as regulators weigh the broader political implications, including potential backlash from the US, where Trump has tightened trade regulations. The fine could exceed $1 billion to set an example for other tech platforms and encourage compliance with the Digital Services Act. The ongoing investigation, which began in 2023, led to a preliminary ruling last year that X had violated EU law. While a final decision is expected this summer, the parties may still reach a settlement if X agrees to take corrective action.
Free Speech Debate and Growing Tensions
One of the EU’s main concerns is X’s content moderation policy. Officials argue that the platform’s policy of non-interference has made it a hotspot for hate speech, disinformation, and illegal content that threatens democratic stability across the 27-member bloc. Another investigation also highlights X’s failure to share data with external researchers, its lack of transparency with advertisers, and its inadequate verification process for accounts, all of which make the platform more vulnerable to abuse and foreign manipulation.
Despite reports, the European Commission stated that no $1 billion fine has been officially decided. X responded strongly, calling the enforcement action “an unprecedented act of political censorship and an attack on free speech.” Musk has previously criticized EU policies as censorship and has expressed his willingness to defend his stance in court.
X, being a private company solely owned by Musk, could face penalties based on the financial scale of Musk’s other ventures, such as SpaceX, making the $1 billion figure plausible, notes NIXSOLUTIONS. Meanwhile, other American tech giants like Meta and Apple are also under scrutiny for possible violations of the Digital Markets Act. Meta is further being reviewed for its child safety measures. These investigations, combined with recent US-EU trade tensions, have sparked concerns in Washington, where officials have signaled they’ll closely examine the fairness of these European laws toward American companies.