European regulators are close to imposing an unprecedented fine on Elon Musk’s social media platform X for failing to comply with new legislation aimed at tackling illegal content and disinformation. The fine could exceed $1 billion, marking the first major use of the Digital Services Act (DSA) and potentially escalating tensions between the EU and the US.
The European Commission is wrapping up its investigation into X and is preparing to announce sanctions this summer, according to insiders. In addition to the fine, the company could be ordered to make structural changes to its product to ensure it complies with EU regulations. These would be the first measures under new digital legislation that requires online platforms to exercise stricter control over the content they distribute.
The size of the fine has been debated given the potential political fallout, especially considering Musk’s influence and closeness to Donald Trump. According to sources, the fine could exceed $1 billion — such a significant penalty is expected to serve as a warning to other IT companies.
The investigation was launched back in 2023, and a preliminary opinion from the European Commission has already confirmed that X violated the law. Despite this, negotiations between the parties are ongoing: there is a possibility of an out-of-court settlement if X agrees to significant changes.
At the same time, the X platform is the subject of a second, larger investigation. In it, EU officials are evaluating the platform’s policy of minimal intervention in content moderation. They consider it a core reason for X becoming a hotbed of illegal rhetoric, false information, and materials that threaten democracy throughout the European Union.
While X is not a public company like Google or Amazon, the EU has the option of calculating fines not only based on X’s revenues but also on Musk’s other assets, including his space company SpaceX. This approach could push the fines well above $1 billion.
X’s Reaction and the Rising Regulatory Tension
X responded harshly to the publication of the investigation, calling the possible sanctions “an unprecedented act of political censorship” and “an attack on free speech.” The company has promised to defend its interests and protect freedom of expression in Europe by all means possible.
Musk has already made it clear that he will not give in without a fight. After the publication of the commission’s preliminary findings last July, he said he would hold a “public trial” to challenge any sanction. Such a development could lead to a serious legal clash with far-reaching consequences. Musk’s approach suggests a prolonged and public confrontation between the company and European authorities.
The Digital Services Act has become a new milestone in European digital regulation. It requires platforms to increase the transparency of their algorithms, strengthen moderation, and make data available to independent researchers. It was X’s refusal to hand over such data and the lack of transparency in its advertising activities that became the key arguments in the prosecution.
X has also faced criticism for failing to verify the authenticity of users’ accounts after granting them verified status. Regulators argue that this practice leaves the platform open to abuse and foreign interference. As a result, the European Commission views these shortcomings as structural and potentially dangerous to the digital information ecosystem in Europe.
We’ll keep you updated as more details emerge regarding the final ruling and any settlement discussions between X and the EU.
Big Tech Under Fire in the EU
X is not the only company currently under pressure from European regulators. Apple is also expected to face fines in the near future for violating another major law, the Digital Markets Act. This legislation targets monopolistic behavior in the tech sector and is part of the broader push to curb the power of major American platforms.
The European Union is reinforcing its reputation as the world’s strictest digital regulator. Over the past decade, almost every large American tech corporation—from Google and Apple to Amazon—has faced fines and investigations in the EU. Now X is joining the list.
In this context, the tough measures from the EU, according to some analysts, may have influenced Donald Trump’s recent decision to introduce new tariffs on European exports. The White House has expressed concern that European laws allegedly “unfairly target” American companies, suggesting that trade tensions between the regions could increase.
The outcome of the X case could become a defining moment not only for the company but also for global tech regulation. As the first major enforcement of the Digital Services Act, this ruling is likely to set a precedent for how the EU handles non-compliant platforms going forward. For other digital platforms operating in Europe, the message is clear: compliance with the DSA is not optional, notes NIXSOLUTIONS.
We’ll keep you updated as more integrations between legal frameworks and platform operations come into play. The coming months may well reshape the future of online speech, moderation, and the responsibilities of large-scale digital platforms.