Will Elon Musk have to pay the European Union a 10-figure check? According to an article in the New York Times on April 3, Brussels is considering imposing a record fine on Elon Musk's social network, X, that could reach $1 billion. It would not be imposed until this summer, but it might never be imposed if the platform cooperates and changes some of its practices. The decision, if confirmed, is expected to reignite already high tensions between the European Union (EU) and President Donald Trump, to whom Elon Musk is now a special advisor.
Since 2023, X has been under investigation by Brussels. The platform is suspected of not sufficiently combating illegal content and disinformation, obligations included in the DSA, the European Digital Services Act. Last year, Brussels concluded, in a preliminary decision, that X did indeed violate this law, notably because the social network had refused to share data with outside researchers. Without this data, it was difficult to assess the spread of disinformation and other harmful content. Another complaint: the platform does not verify the authenticity of users who pay to have a "verified" account, which leaves the network vulnerable to foreign interference and abuse.
A fine that would serve as an example for other digital giants?
The resulting fine could exceed a billion dollars, according to a source in the American media: with such an amount, the European authorities would seek to hit hard to dissuade other companies from not complying with the text. Brussels reportedly, for a time, analyzed the possible geopolitical consequences of this investigation – and all the others targeting American giants – on the Old Continent.
It then chose to stay the course, continuing its investigations, and issuing fines, if necessary, in the event of violations. Fines are inevitably hefty, as they can theoretically reach up to 6% of the global turnover of the company concerned under the DSA or DMA.
Last January, the European executive explained that it was taking "additional investigative measures in the context of the ongoing DSA (European Digital Services Regulation) procedure against X," this time to "shed light on the compliance of X's recommendation systems with the DSA obligations." The billionaire was then heavily criticized on the Old Continent for his interference in the German elections and his support for the local far-right AFD candidate. He was also accused of favoring, with his algorithm, the visibility of certain content (such as his own or that shared by personalities he supports), to the detriment of others.
Also according to our colleagues, the investigation against X, opened in 2023, would progress, regardless of the ongoing negotiations on the customs duties announced by Donald Trump two days earlier. Elon Musk's social network would also be targeted by a second investigation. This time, it is "X's hands-off approach to controlling user-generated content" that is targeted, details the New York Times. The tweet moderation system – entrusted to users, notably via community ratings – is reportedly in the sights of European authorities, as X has become “a hub for hate speech, disinformation content, or content that harms democracy in all 27 countries,” write our American colleagues.
“An unprecedented act of political censorship and an attack on freedom of expression,” according to X
The European Commission declined to comment specifically on this case, recalling that "our laws have been and will be applied fairly and without discrimination against all companies operating in the European Union, in full compliance with global rules." X, for its part, considered that such a fine would be "an unprecedented act of political censorship and an attack on freedom of expression." The platform promises to do everything in its power to defend its business and "protect freedom of expression in Europe," our colleagues report.
Last February, the White House warned in a memo that the two major European laws aimed at regulating digital giants, namely the DMA, the European regulation on digital markets, and the DSA, the European regulation on digital services, unfairly targeted American companies.
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