EU Plans $1 Billion Fine for Elon Musk's X Over Disinformation Violations

2025-04-04 transformation

Brussels, Friday, 4 April 2025.
The European Union seeks to impose a $1 billion penalty on Elon Musk’s X for not adhering to the Digital Services Act, marking a significant step in enforcing digital governance laws.

Investigation Origins and Key Violations

The investigation into X’s practices began in 2023, with a preliminary ruling in July 2024 identifying multiple violations of the Digital Services Act [1][2]. The probe revealed that X failed to maintain transparency in advertising practices, denied researchers access to disinformation data, and inadequately authenticated users with ‘verified’ accounts [3]. European regulators are now building a case demonstrating how X’s ‘hands-off approach’ to content moderation has transformed the platform into a hub for illegal content affecting democratic processes across the EU’s 27 member states [4].

Unprecedented Penalty Calculation

In an unprecedented move, EU regulators are considering including revenue from Musk’s other ventures, including Tesla and SpaceX, in calculating the potential fine [5]. Under the Digital Services Act, penalties can reach up to 6% of a company’s global revenue [5]. The European Commission maintains its position of enforcing laws equitably, with a spokesman stating they ‘have always enforced and will continue to enforce our laws fairly and without discrimination toward all companies operating in the EU’ [6].

Political Implications and Response

The timing of this enforcement action has significant political implications, particularly given the current U.S. administration’s stance. Vice President JD Vance publicly criticized EU regulations in February 2025 [7], while X’s Global Government Affairs team has labeled the EU’s actions as ‘an unprecedented act of political censorship and an attack on free speech’ [5]. The platform maintains it has ‘gone above and beyond to comply with the EU’s Digital Services Act’ and plans to contest any penalties [5].

Timeline and Next Steps

The final ruling and penalties are expected to be announced in summer 2025 [1][3]. The consequences will likely include both the monetary fine and mandated product changes [1]. A broader investigation into X continues, focusing on the platform’s approach to user-generated content and its potential role in fostering illegal hate speech and disinformation [4]. This case represents a crucial test of both EU regulatory authority and the enforcement mechanisms of the Digital Services Act [8].

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digital services disinformation