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Investigation Shows That Elon Musk’s Social Network Violated the Digital Services Act. Fine Could Reach 6% of Global Revenue. Case Puts More Pressure on Tension Between Europe and the US.
This time, even rockets are not safe: the European Union is about to impose a billion-dollar fine against Elon Musk for serious failures on the X platform, formerly Twitter. According to The New York Times, the European Commission concluded that the billionaire South African’s social network violated various rules of the Digital Services Act (DSA) — legislation that regulates the operation of digital platforms across the continent.
The case has taken on serious proportions: the fine could exceed 6% of the company’s global revenue, and there are those who argue that the scrutiny should extend to other companies in the group, such as SpaceX and Neuralink. Musk, who has always positioned himself as a defender of “unrestricted freedom” on social networks, is now facing the cost of an unmoderated discourse.
Where Did X Go Wrong?
Since Elon Musk purchased Twitter and transformed it into X, the platform has faced criticism for relaxing content moderation policies, allowing the proliferation of fake news, and failing to provide clear reports about its algorithms. The European Union, which has been applying stricter rules since 2022 with the Digital Services Act, decided to take action.
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Among the failures identified are the failure to remove illegal content, lack of transparency in paid advertisements, and non-compliance with basic safety obligations for users. The European Commission opened a formal investigation and, after months of inquiry, decided to move forward with the imposition of sanctions.
How Much Could Elon Musk Lose from This?
The fines stipulated by the DSA can reach 6% of a company’s annual global revenue. In the case of X Corp, it is estimated that this amount could exceed US$ 800 million, depending on the period considered. But the impact goes beyond financial loss.
The European Commission is already considering imposing multiplatform sanctions, also affecting other companies owned by Elon Musk operating on the continent — such as Starlink, which provides satellite internet to remote areas of Europe.
Geopolitics and Digital War
The case has crossed the borders of technology and entered the realm of geopolitics. The possible sanction from the European Union against Musk occurs in the context of the entrepreneur’s rapprochement with Donald Trump, who is seeking to return to the US presidency in 2024. European authorities see the “laissez-faire” promoted by Musk as a threat to digital stability, especially in times of narrative warfare.
Meanwhile, political analysts warn that the confrontation between European regulation and the “anything goes digital” mentality from Silicon Valley could escalate into a diplomatic impasse between Brussels and Washington.
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