The European Union is finalizing sanctions against Elon Musk’s social networking platform X, which could exceed €1 billion. The measure, expected to be announced this summer, is in response to alleged violations of the Digital Services Act (DSA)—a 2022 regulation designed to force tech companies to regulate content the EU deems ‘unlawful’ and ‘disinformation’.
The investigation against X began in 2023. Last year, regulators issued a preliminary ruling pointing to violations of the DSA. Among the allegations were X’s refusal to share data with external researchers, making it difficult to track content, and that it lacked transparency regarding advertisers and the verification of paid accounts.
The EU claims this makes the platform vulnerable to abuse and foreign interference. Under the DSA, fines can reach up to 6% of a company’s global revenues. In the case of X, regulators could include the revenues of other Musk companies, such as SpaceX, raising the potential penalty to over a billion euros.
X has not yet issued an official statement. However, after initial reports of the sanctions, the company posted on its platform that the actions against it would be “an unprecedented attack on free speech.” Musk, known for his rejection of European regulations, said last July, following the preliminary ruling, that he would take the case to court in a “public battle.” If X refuses to comply with EU orders, it could trigger a legal confrontation with transatlantic implications.
The case against X is the first significant test of the DSA. That may be why they have taken on such a well-known company.
In addition to the main investigation, X is also the target of a second, broader inquiry over its commitment to free expression and its refusal to heavily censor user-generated content. EU officials say the platform has become a source of “hate speech” and “disinformation” that “threatens democracy.” However, critics say this is part of a broader effort by Brussels to maintain control of the narrative.
The X case is not isolated. The EU is also preparing sanctions against Meta and Apple for violating the Digital Markets Act of 2022. There is also another investigation against Meta for allegedly failing to adequately protect minors under the DSA.
This pattern highlights Brussels’ increasingly aggressive stance towards U.S. tech companies, an approach that has generated friction with Washington. In February, U.S. Vice President JD Vance compared European regulations to digital censorship, while a White House memo warned that EU laws could unfairly target American companies.
While Musk is determined to resist and the EU is determined to impose its authority, this dispute could redefine the balance between regulation and freedom in the digital space at a time of growing tension between the two sides of the Atlantic.
