The billionaire’s X platform will be ordered to pay a breathtaking $1 billion.

In a seismic clash between Silicon Valley and Brussels, the European Commission is preparing to impose a record-breaking fine — potentially exceeding $1 billion — on Elon Musk’s social media platform X (formerly Twitter) for repeated violations of the bloc’s sweeping Digital Services Act (DSA), E.U. officials told journalists.

The penalty, expected to be officially announced this summer, would be the first and largest ever issued under the DSA, a landmark European law designed to force tech giants to crack down on disinformation, illegal content, and algorithmic opacity.

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E.U. insiders describe the fine as a "deterrent signal" to the tech world — and one that could ratchet up already simmering tensions with the United States, where Musk remains a vocal political figure and close ally of President Donald Trump.

Violations include disinformation, hate speech, and deceptive design

The investigation into X, opened in the E.U. in late 2023, has zeroed in on several key breaches of the DSA:

• Spread of illegal and harmful content, with inadequate tools to remove or flag disinformation.
   
• Failure to provide transparency in political advertising and user data access for researchers.
   
• Design manipulation, including the misleading use of the platform's "blue check" system.
   
• Weak content moderation, which has allegedly made X a hub for hate speech and electoral interference across Europe.

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was a test ahead of U.S. elections

A preliminary ruling issued last year by the European Commission concluded that X had violated several core provisions of the DSA. A second investigation, with an even broader scope, is ongoing and could lead to further penalties if the platform is found to be enabling threats to democratic institutions.

Musk fires back

Musk, no stranger to regulatory showdowns, has vowed to fight any enforcement action, calling the E.U.’s approach “censorship under the guise of safety.” Last July, he promised a “very public battle in court” if fined, and has since accused the European Commission of attempting to strike an "illegal secret deal" in exchange for quietly censoring users — a claim Brussels has categorically denied.

He escalated his rhetoric again this week, taking to X to denounce French and German authorities while aligning himself with far-right political figures. In response to France’s top court barring Marine Le Pen from presidential candidacy over embezzlement charges, Musk sided with the far-right leader, echoing Trump’s claim that the decision was a political witch hunt.

Political stakes soar amid trade war

E.U. regulators are reportedly walking a diplomatic tightrope as they weigh the severity of the penalty. The move comes just weeks after President Trump slapped a 20% tariff on E.U. imports, sparking fears of a new transatlantic trade war. A White House memo released shortly after Trump’s February inauguration accused the E.U. of targeting American companies unfairly under its new tech laws.

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X fact-checking bot reports Elon Musk for lying, literally

Some officials reportedly delayed progressing the X investigation following Trump’s return to power, assessing the potential fallout of taking action against a platform run by one of his closest allies. However, amid growing concern over X’s role in spreading disinformation, the Commission decided to press forward.

The upcoming fine is poised to test the DSA’s strength as a global model for digital governance. Under the law, fines can reach up to 6% of a company’s global turnover. In the case of X, that could amount to more than $1 billion.

However, he lowered the tone in a recent post expressing hope that the E.U. and the U.S. would settle their differences and end up with zero tariffs in their trade.

Sources: European Commission, Elon Musk’s X account

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