The European Union is poised to fine Elon Musk’s X platform by the end of 2025 for breaching its digital rules, marking a significant test of the bloc’s resolve to regulate online content. The investigation, launched in December 2023, has been ongoing for nearly two years, with the EU accusing X of deceiving users with its paid blue checkmarks and failing to provide sufficient transparency about its advertising practices.
The EU’s decision to impose a fine has been complicated by the changing political landscape in the United States. With Donald Trump’s return to the presidency, the EU faces the prospect of straining relations with the US if it imposes a fine on X. Top US officials, including Commerce Secretary Howard Lutnick, have expressed disapproval of the EU’s tech rules, urging the bloc to loosen its digital laws in exchange for reduced steel duties.
Despite these tensions, EU officials insist that their decision-making process has not been influenced by US politics. Instead, they claim to be focused on building a watertight case to withstand potential legal challenges. The EU executive is expected to impose a fine before the end of the year, but the exact timing and amount remain uncertain.
The fine could be based on X’s turnover or on the revenues of Musk’s entire business empire, including Tesla. The Digital Services Act, which governs online content in the EU, allows for fines of up to 6% of a company’s global annual revenues. Any fine would require the approval of the European Commission’s executive team.
The EU’s probe into X is wide-ranging, covering issues such as the spread of illegal content and information manipulation. While the investigation has been ongoing for nearly two years, the EU has come under pressure to act against X to enforce its digital rules. In January, the EU demanded that X provide more details about its algorithms and any recent changes as part of the probe.
The potential fine against X marks a significant test of the EU’s ability to regulate online content and enforce its digital rules. As the EU navigates its relationship with the US, it must balance its commitment to regulating online content with the need to maintain good relations with its international partners. The outcome of the investigation and any potential fine will be closely watched by tech companies, regulators, and governments around the world.