European Union regulators are preparing significant penalties against Elon Musk’s social media platform X for violating the Digital Services Act (DSA), according to The New York Times.
The penalties, expected to include a fine up to $1 billion and demands for product changes, are set to be announced this summer.
The DSA aims to “combat illicit content and disinformation,” with the X investigation marking the first major attempt to enforce stricter social media regulations and “force social media companies to police their services.”
Regulators accuse X of failing to provide data to researchers, lacking transparency about advertisers, and not verifying users who pay for “verified” accounts, which increases vulnerability to abuse and foreign interference.
X also faces a separate EU investigation alleging that its lenient content moderation has turned the platform into a hub for “illegal hate speech” and “disinformation.” While officials say a settlement could still be reached if X makes necessary changes, Musk has signaled his intent to challenge any penalty in court.
The investigations underscore the EU’s continued push to regulate major American tech companies.
