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E.U. Reportedly Preparing Penalties Against Elon Musk’s X Platform
The European Union is reportedly preparing to impose penalties on X, the social media platform owned by Elon Musk, after preliminary findings indicated violations of the Digital Services Act (DSA). According to a report by The New York Times, four individuals familiar with the situation have confirmed that the penalties are likely to be announced this summer.
The ongoing investigation into X stems from the E.U.’s broader effort to enforce compliance with the DSA, a landmark regulation designed to reduce online disinformation, hate speech, and harmful digital content while ensuring transparency in digital advertising and data accessibility.
Preliminary Findings From the E.U.
In July, the European Commission released early findings from its investigation into X, identifying several areas where the platform allegedly failed to meet the DSA’s standards. These include:
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Misuse of Verified Accounts: The E.U. found that X’s interface for verified accounts was inconsistent with industry practices, and that it had been exploited by malicious actors to mislead users.
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Advertising Transparency Barriers: According to the Commission, X imposed restrictions that hindered independent monitoring of advertisements. These actions allegedly obstructed the required research into how online ads contribute to emerging digital risks.
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Noncompliance with Data Sharing Rules: The investigation also found that X had not provided adequate public data access to researchers. Under the DSA, platforms of X’s size are required to enable external studies into disinformation and content trends.
The findings were part of the E.U.'s first formal investigation into potential DSA breaches since the law took effect for very large online platforms in 2023.
Official Statement From X
Following media reports about potential penalties, X’s Global Government Affairs team released a public statement asserting the platform’s commitment to DSA compliance. The statement read:
“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.”
The company did not directly address the individual allegations contained in the E.U.’s preliminary report but emphasized its cooperation with European regulators and maintained that it has taken necessary steps to align with legal requirements.
Background on the Digital Services Act
The Digital Services Act is part of the European Union’s digital regulatory framework aimed at enhancing safety and accountability for major online platforms operating within the bloc. It applies specific responsibilities to platforms with over 45 million active users in the EU, including content moderation obligations, algorithmic transparency, and obligations to curb the spread of illegal or harmful material.
Under the DSA, noncompliance can result in significant penalties—up to 6% of a company’s global annual turnover. The regulation is enforced by the European Commission in the case of the largest platforms, such as X, Meta, and Google.
Ongoing Investigation and Expected Timeline
The individuals cited in the New York Times report said that formal penalties are expected to be finalized and announced later in the summer. The process is still ongoing, and final conclusions from the Commission have not been publicly released.
The E.U. has not issued an official comment on the timeline or scope of potential enforcement actions. However, the report suggests that the European Commission is likely to take formal action in line with its findings, following the conclusion of procedural reviews.
International Reactions
The broader regulatory effort around the DSA has drawn attention globally. Reports indicate that certain political figures, including U.S. officials, have criticized the E.U.’s regulation, arguing it may place disproportionate burdens on American technology firms. According to official statements, the U.S. administration has pledged to evaluate the impact of the DSA on American businesses operating in Europe.
X, which has undergone several major changes in both leadership and content moderation policy since Musk acquired the platform in 2022, has faced scrutiny from various governments and civil society groups over its approach to content regulation and transparency.
Broader Implications for Digital Platforms
If penalties are imposed, this would mark one of the first major enforcement actions under the Digital Services Act. The case could set a precedent for how the European Commission applies the law to large online platforms and could influence future compliance strategies across the digital sector.
While the current case focuses on X, the E.U. has also signaled that it is actively monitoring other major tech firms for DSA adherence. The law’s implementation is considered a key part of the bloc’s broader strategy to manage the influence of large digital platforms on public discourse, data privacy, and commercial transparency.
Conclusion
As the European Union’s Digital Services Act moves into active enforcement, X’s case may become a test of the regulation’s strength and scope. While no penalties have been formally announced, the investigation into X’s compliance represents a significant moment in the evolving relationship between global technology platforms and regulatory bodies. Further developments are expected in the months ahead as the Commission finalizes its review.
