EU Reportedly Weighs $1B Fine Against Elon Musk’s X Over Digital Services Act Violations

The European Union is reportedly preparing to levy a $1 billion fine against Elon Musk’s social media platform X (formerly Twitter), citing violations of the Digital Services Act (DSA) related to illicit content, hate speech, and disinformation. The fine could potentially factor in revenue from Musk’s broader business empire, including Tesla and SpaceX, according to an April 3 report by The New York Times.What You Need to Know:Fine amount: Up to $1 billion, with calculations potentially including revenue from Musk's other companies.Law cited: The EU’s Digital Services Act, which allows fines of up to 6% of a company’s global revenue for non-compliance.Allegations: X has failed to adequately police harmful content, refused data access to researchers, and lacked transparency in advertising and account verification practices.Investigations: The platform is reportedly under two separate probes, both of which could result in substantial penalties or product restrictions.X Pushes Back, Calls Fine “Political Censorship”In response, X’s Global Government Affairs team issued a statement condemning the move as “an unprecedented act of political censorship and an attack on free speech.” The team also said:“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 has disputed earlier regulatory findings in hundreds of points, arguing that it has complied with EU requirements. Elon Musk has previously accused EU regulators of proposing backroom deals involving secret content suppression in exchange for avoiding penalties—a claim firmly denied by EU officials.Possible Settlement and Future PenaltiesWhile a final ruling has yet to be issued, The New York Times reports that EU officials may still offer a settlement path, requiring X to implement product changes that meet regulatory standards. A second investigation into the platform’s handling of hate speech and disinformation could also result in additional fines or restrictions.The DSA, enacted in October 2022, holds large digital platforms accountable for content moderation, transparency, and user safety, and grants the EU new powers to enforce compliance.What’s Next?The EU is expected to announce the full scope of any penalties in the coming months, though the situation remains fluid. Musk has said he is prepared to fight the decision in court, declaring:“I look forward to a very public battle in court so that the people of Europe can know the truth.”As regulatory pressure ramps up, the case could have broad implications for free speech, platform responsibility, and the enforcement power of global digital governance, according to Cointelegraph.