This EU fine would ‘represent an unprecedented act of political censorship and an attack on free speech’, X said.
The EU’s antitrust regulator is reportedly looking to fine X a hefty sum for breaching the Digital Services Act (DSA), sources tell The New York Times.
The fine, purported to be more than $1bn, could make an example of the Elon Musk-owned company, warning others to not violate the EU’s laws. The penalty is expected to be announced “this summer”, the publication reported.
Unlike publicly-traded companies such as Google, Meta and Apple, which have come under EU crosshairs before, X is privately owned by Musk.
Sources told the publication that EU regulators are considering calculating a fine which also counts revenue from Musk’s other companies such as SpaceX. This could drive the penalty to “well over” the billion-dollar mark.
Apart from the fine, another expected penalty is an order for the social media platform to make changes to its product offerings in the region.
However, Musk’s close relationship with US president Donald Trump, as well as the country’s growing distaste of EU regulations could heighten the already tense relationship between the two.
Responding to the news, X’s Global Government Affairs account posted a statement on the social media platform. It read: “If the reports that the European Commission is considering enforcement actions against X are accurate, it represents 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 news comes after recent reports that the EU would impose minimal fines on Apple and Meta as a result of its Digital Markets Act investigations into the two companies.
The softened potential punishment is seen as a way for the region to avoid being further antagonised by the US, which has accused Europe of forcing its “most productive companies” to deal with EU policing and regulations.
The investigation into X began in late 2023, with EU authorities trying to assess whether the platform – designated as a ‘very large online platform’– violated the DSA, particularly in areas linked to risk management, content moderation, dark patterns, advertising transparency and data access for researchers.
In addition, the investigation also looked into the measures X takes to combat information manipulation on its services, especially in the context of its Community Notes feature and the dissemination of material related to Israel’s war in Palestine.
Last year, a preliminary ruling found that the company had violated its laws. While earlier this year, the EU ordered X to hand over internal documents about its recommender system and access to some of its commercial APIs (application programming interfaces) that would allow authorities to conduct direct fact-finding on content moderation and virality of accounts.
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