As Elon Musk’s social media platform X continues to dominate headlines, the European Union is reportedly preparing to hit it with a historic fine, potentially exceeding USD 1 billion. The penalty, linked to violations of the Digital Services Act (DSA), would mark one of the largest enforcement actions against a tech company under the EU’s tough new digital rules.
Massive fine over DSA breach in the works
According to The New York Times, the European Commission may announce the fine by summer 2025, accusing X of failing to curb illicit content, dark patterns, and misinformation. X, designated as a “very large online platform,” has been under investigation since late 2023. Authorities are looking into how the platform manages content moderation, ad transparency, and risk mitigation—especially during sensitive geopolitical events like the Israel-Palestine war.
What makes this case more controversial is that the EU might even consider Elon Musk’s revenue from other ventures like SpaceX, potentially pushing the fine above the billion-dollar threshold.
X fights back, calls EU move "Censorship"
X has responded fiercely, claiming the EU's potential action is politically motivated. In a statement from its Global Government Affairs team, the company said: “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 insists it has “gone above and beyond” to meet DSA compliance and vows to defend its platform and users with every legal tool available.
Agent access, algorithms under scrutiny
In early 2024, EU regulators intensified the probe, ordering X to hand over internal documents, algorithms, and API access. These are meant to assess how X handles the spread of harmful content and misinformation, and whether tools like Community Notes are effective at moderation.
A preliminary ruling had already found X in violation of the DSA, and this upcoming fine could set a precedent for how Big Tech platforms operate in the European market.
Legal battle in India adds to global pressure
X’s regulatory woes aren’t limited to Europe. The company is currently locked in a legal fight with the Indian government over content takedown demands. X argues that authorities are abusing Section 79(3)(b) of the IT Act to bypass judicial oversight, ignoring the safeguards provided under Section 69A.
To add fuel to the fire, X has refused to join Sahyog, the Indian government’s takedown request portal, calling it a "Censorship Platform." The Indian government retaliated by criticizing X’s stance, intensifying tensions between the two.
Bigger implications for Musk’s India plans
This legal standoff could complicate Elon Musk’s broader ambitions in India. His companies Tesla and SpaceX are seeking crucial regulatory approvals—Tesla for electric car sales and SpaceX for its Starlink internet service in collaboration with Jio and Airtel. The ongoing feud with Indian authorities might pose roadblocks for both ventures.
The Bigger picture: Free speech vs regulation
This showdown with the EU and India underscores a growing global trend—governments tightening digital regulation, while tech platforms push back under the banner of free speech and platform autonomy. For Elon Musk’s X, the next few months could be pivotal, with legal, financial, and reputational risks hanging in the balance.
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