EU Threatens Elon Musk With Potential $1 Billion Fine: Latest Move Against Big Tech

European Union regulators are preparing to hit Elon Musk Twitter’s platform faces potential penalties exceeding $1 billion due to violations of disinformation regulations, according to insider reports.

The move would likely to ratchet up tensions between the EU and United States, with tech billionaire Musk a close adviser to President Trump.

The social media platform could also face forced product changes for failing to abide by the landmark law to combat illicit content and disinformation, sources told the New York Times .

It is anticipated that the fines will be unveiled this summer, according to the sources, marking the first time such penalties will be enforced under the new European Union legislation designed to compel social media firms to monitor their platforms more closely.

The inquiry into X commenced in 2023, and authorities released an initial judgment last year indicating that the platform breached the Digital Services Act.

The fine could be significant in an effort to deter other tech companies from violating the law.

It’s anticipated that Musk will resist all efforts to regulate his platform, stating last July that he is eager to challenge any consequences in “a highly visible legal confrontation.”

European Union officials are said to be discussing the severity of penalties they should enforce, worried about additional strain on their relationship with President Trump due to escalating tensions across the Atlantic regarding trade policies after his recent imposition of extensive tariffs.

EU regulators have emphasized that their probe is moving forward independently of trade talks following a 20 percent duty being levied on European products entering the U.S.

Shortly after Donald Trump took office in February, the White House released a memorandum expressing concerns that the European Union’s Digital Services Act and Digital Markets Act were under scrutiny for purportedly discriminating against American businesses.

Reportedly, regulators delayed their probe into X following Trump’s election victory as they aimed to evaluate the possible political consequences of investigating the company linked to one of Trump's nearest associates, according to an individual.

As tensions between the EU and the US continued to rise over trade issues, officials opted to proceed with the investigation, according to the source.

"We have consistently upheld and will keep upholding our regulations impartially and without discrimination against every company functioning within the EU, strictly adhering to international guidelines," stated a representative of the European Commission in an official release, refraining from specific remarks about X.

The platform is also under scrutiny from the European Union in another probe that encompasses a wider range of issues. According to reports, investigators are collecting information suggesting that X’s lenient stance on moderating user-generated content has turned it into a haven for unlawful hate speech.

If it is determined that the company is not effectively addressing hate speech, misinformation, and content that erodes democratic principles within the EU, it may encounter additional sanctions, according to two sources.

After the EU Commission revealed its initial findings that X violated the Digital Services Act (DSA) earlier this year, Musk responded by vowing to take legal action.

He penned on X that the organization’s leadership proposed entering into an ‘illicit covert agreement’ with his firm, allowing them to avoid paying the penalty in return for discreetly restricting user activity—an assertion the EU denied.

Musk has repeatedly criticised European policies on social media as a form of censorship, and has regularly waded into rows concerning the EU and European politics.

Yesterday evening, he turned to X to criticize the ruling by France’s highest judicial authority that disqualified far-right leader Marine Le Pen from participating in elections following her conviction for misappropriating European Union money.

'Release Le Pen!' he responded to a tweet by Trump, who suggested that charging the National Rally leader—who plans to contest the French presidency—was merely a 'witch hunt.'

Musk, who has also used his platform to attack German Chancellor Olaf Scholz and show his support for a far-right party in Germany, said the move against Le Pen would 'backfire, like the legal attacks against President Trump'.

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