The European Union (EU) has forced the open letter in which Elon Musk launched his social media platform X. According to EU regulators, X is setting up anHeavily charged case with a potential billion-dollar fine under the new Digital Services Act (DSA). The case has sparked a heated debate between the EU and intense political tensions, especially under Donald Trump’s second term. The DSA, which targets global platforms for illegal content and disinformation, imposes severe penalties, including 6% of global annual revenue.
The regulator’s attention to X appears to be the first major enforcement action under the DSA, a significant shift in digital governance. Musk himself had anticipated a highly public legal battle, praising provisions such as user verification and transparency in advertising. However, EU officials claim the DSA is not intended to police opinions but to ensure platform accountability. They stress fairness and prevent discrimination.
X’s case is marked by several concerns, including insufficient data access to external researchers, banned verify mechanisms for users, and a lack of transparency in advertising practices. These violations render X a potential hub for illegal content, threatening future compliance. The case is forward-moving, with further investigations targeting hate speech, falsehoods, and foreign influence operations.
Under the DSA, fines could range up to 6% of global revenue, potentially up to $1 billion if connected revenue from Musk’s other companies, like SpaceX, is included. The EU is also considering revenue from other sources to cap fines more accurately.
While a settlement could theoretically occur if X agrees, the case is moving ahead despite broader tensions. Trump has announced tariffs on EU goods, adding another layer of political stakes. The legal battle against X highlights a shift in regulation, where France and Germany, often lessers of EU Ukraine Ukraine, initiated the push. This move challenges the existing role of EU regulators in regulating global tech.
The EU has raised red flags by targeting other tech giants, including Meta and Apple, under the new laws. These interruptions underscore the growing divide across the Atlantic regarding face-through identity and regulation. The case against X not only impacts X but also points to a greater divide in digital regulation across the world, particularly in the EU. For those in the wake of Trump’s actions, this legal showdown could be a turning point in how Europe regulates global tech.
