The European Union (EU) is reportedly considering a substantial $1 billion fine against Elon Musk’s platform, X (formerly Twitter), due to alleged violations of the Digital Services Act. According to a report by The New York Times, the EU plans to calculate the fine based on Musk's overall revenue, which includes income from his other enterprises like Tesla and SpaceX. The Digital Services Act, which was enacted to regulate social media platforms and curb illegal online activities, allows for penalties of up to 6% of a company's global revenue for noncompliance. In response to the potential fine, X's Global Government Affairs team criticized the move as "an unprecedented act of political censorship" that threatens free speech. The team emphasized their commitment to comply with the EU laws and assured that they would explore all options to defend their operations and user safety in Europe. Besides the financial penalties, the EU regulators may also require X to implement product changes, with a clearer outline of potential penalties expected in the coming months. X is already under investigation for allegedly fostering an environment of disinformation and hate speech. This investigation began in 2023, with a preliminary ruling in July 2024 confirming violations of the Digital Services Act, specifically regarding X's failure to provide transparency to researchers and maintain user authenticity. Musk and X's representatives have expressed intentions to fight the rulings in court, revealing a complex interaction between regulatory compliance and concerns about freedom of speech in the EU.

The European Union (EU) is reportedly weighing a significant $1 billion fine against Elon Musk’s platform X (formerly known as Twitter) due to purported violations of the Digital Services Act. A report by The New York Times indicates that the fine may be based on Musk's total revenue, which encompasses earnings from other ventures like Tesla and SpaceX. The Digital Services Act, established to regulate social media companies and mitigate illegal online activities, permits penalties of up to 6% of a company's global revenue for noncompliance. In response to the potential fine, X's Global Government Affairs team has labeled the action as "an unprecedented act of political censorship" that endangers free speech. They have reiterated their commitment to adhere to EU regulations and stated their intention to explore all avenues available to defend their business and safeguard user safety in Europe. Additionally, EU regulators may compel X to implement product modifications, with more details on potential penalties expected in the coming months. X is already under scrutiny for allegedly creating an environment conducive to disinformation and hate speech. This investigation, which commenced in 2023, saw a preliminary ruling in July 2024 that confirmed X's breaches of the Digital Services Act, particularly regarding its lack of transparency toward researchers and failure to verify user authenticity. Musk and representatives from X have indicated their plans to contest the rulings in court, highlighting the ongoing tension between regulatory compliance and free speech concerns in the EU.