EU to Hit Elon Musk’s X with $1B Fine Over Disinformation

European Union regulators are preparing to impose a substantial fine on Elon Musk’s social media platform, X, for violating the Digital Services Act (DSA), according to The New York Times. 

EU authorities could fine X over $1 billion, along with operational demands to comply with EU regulations. The DSA has issued its initial significant penalty through which it demands EU-approved content moderation and disinformation prevention systems.

🇪🇺🇺🇲 The EU is preparing to fine Elon Musk's 𝕏 over $1 billion for "disinformation" pic.twitter.com/eQRhjhkw7e

— Daily Romania (@daily_romania) April 3, 2025

X Under Investigation for Content Moderation Practices

Initiated in 2023 the investigation of X focuses on identifying how the platform fails to deliver EU-mandated controls for harmful content. The authorities assert X does not disclose its advertising data or user verification information to appropriate standards. According to the authorities, these defects in platform infrastructure have enabled false information to spread at greater speed.

The investigation reveals that X might restrict data access for independent researchers which hinders their capacity to understand disinformation distribution. “The lack of transparency is a major concern,” an EU official said. “If platforms do not allow independent oversight, it is impossible to verify their claims about content moderation.”

Moreover, Any agreement regarding updated policies between X and EU regulators remains unreached despite their ongoing discussion.

Potential Legal Challenge from X

If the EU moves forward with the fine, X is expected to contest the decision in court. The company has previously argued that regulatory actions against it are politically motivated and could threaten free speech. “Any attempt to silence open discussion under the guise of regulation is deeply troubling,” a representative for X stated.

Elon Musk has also been outspoken in his opposition to European digital regulations. He previously indicated that he would challenge any penalties, saying, “We will defend our platform and the right of people to express themselves freely.” A prolonged legal dispute could delay enforcement and set a precedent for how the EU applies its digital regulations to major technology firms.

Broader Investigation and Additional Penalties Possible

EU regulators pursue a comprehensive assessment of user-generated content management at X simultaneously with their ongoing investigation. The examination process determines if X platform moderation policies contributed to hate speech and misinformation spreading across its platform.

Eu Authorities have started multiple investigations to assess compliance with DSA and DMA regulations among different technology companies. Meta and Apple are being scrutinized independently by authorities about EU compliance but Meta must also answer questions concerning the safeguarding of children during online activities.

Major tech companies have faced swift actions from European regulators who enforced monetary punishments when these companies breached data privacy regulations alongside anti-competitive practices. 

“No organization is exempt from the law,” an EU representative stated. “The regulations are uniformly applicable to all platforms functioning within Europe, and enforcement will be executed accordingly.”

The EU shows no signs of waiving its digital regulation commitment even though European agencies face rising conflicts with U.S.-based technology companies.