EU may fine Elon Musk's X $1 billion for DSA violations

The European Union is reportedly considering a $1 billion fine against Elon Musk’s X (formerly Twitter) for alleged violations of the Digital Services Act (DSA).

This penalty could be calculated based on revenue from Musk’s other ventures, including Tesla and SpaceX, according to sources cited by The New York Times.

The DSA, enacted in October 2022, requires platforms to curb illegal content and ensure transparency.

Companies found in violation can face fines of up to 6% of their global annual revenue.

EU regulators allege that X has failed to comply with key provisions, including transparency about advertisers, user verification, and data accessibility for researchers.

X’s Global Government Affairs team responded to the reports, calling the potential fine “an unprecedented act of political censorship and an attack on free speech.”

The company stated it has gone “above and beyond” to comply with the DSA and vowed to defend its business and users’ rights.

The investigation into X began in 2023, with a preliminary ruling in July 2024 finding the platform in breach of the DSA.

The ruling cited issues such as inadequate transparency about its blue checkmark system, which regulators described as “deceptive,” and failure to provide a searchable ad database.

Additionally, X has been accused of not doing enough to combat illegal content like hate speech and disinformation.

EU regulators may also demand operational changes at X alongside the fine.

However, a settlement could be reached if X agrees to address the violations.

The company has already raised hundreds of disputes against the preliminary findings.

Elon Musk has criticised the EU’s actions, alleging that regulators offered a deal to suppress certain content in exchange for leniency—a claim denied by EU officials.

Musk stated he looks forward to a “very public battle in court” to reveal the truth.