Elon Musk’s social media platform X may face fines exceeding $1 billion for allegedly violating the EU’s Digital Services Act (DSA), the New York Times (NYT) reported on April 4, citing four people familiar with the matter.
The DSA, enacted in 2022, aims to reduce illegal and harmful content on major online platforms. The European Commission began formal proceedings against X in 2023 and has since warned that selling verified check marks could be misleading to users and in breach of the DSA.
According to the NYT, this would be the EU’s first enforcement action under the DSA, with possible penalties expected this summer. In addition to fines, X may be required to change key platform features to comply with the law.
The EU is also investigating whether X’s limited content moderation has allowed hate speech and disinformation to flourish. Penalties under the DSA can reach up to 6% of a company’s global revenue, and officials are reportedly considering calculating X’s fine based on the combined revenue of all Elon Musk-owned companies, including SpaceX.
X could avoid the fines by implementing the changes demanded by the European Commission, the NYT noted.
The Global Government Affairs team at X responded and said that if the EU’s plans are true, it would represent an “unprecedented act of political censorship and an attack on free speech.”
“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 team said.
Following billionaire Elon Musk's 2022 acquisition of X, formerly known as Twitter, the social media company has faced criticism for increased levels of disinformation, and lack of effective moderation of the content shared there.
Musk has himself promoted Russia-backed narratives about the war in Ukraine, including mocking Zelensky with memes portraying him as begging for financial aid, and echoing Kremlin propaganda that blames Ukraine—not Russia—for obstructing peace efforts.
Yuliia Taradiuk
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