European Union regulators are reportedly finalizing plans to issue a fine against social media platform X, formerly Twitter, for alleged violations of the Digital Services Act (DSA). According to media reports, which state sources familiar with the matter, the penalty could exceed $1 billion and would include mandated changes to how the platform operates within the EU. If confirmed, this would represent the first major enforcement action under the DSA. Of course it isn’t surprising that the actions are coming after Trump’s recent tariff mayhem and are coming against Trump’s favourite son, Elon Musk.
This comes after a preliminary investigation into the social media platform began in 2023, stemming from concerns over the platform’s handling of illegal content, disinformation, and transparency obligations. Under the DSA, large online platforms are required to take active steps to moderate harmful and illegal material, improve the visibility of trustworthy information, and ensure that advertising practices are transparent. EU regulators allege that X has failed to meet several of these obligations. Although the fine is expected to be officially announced during the summer, the possibility remains for a negotiated settlement. EU officials have suggested that if X agrees to implement changes that adequately address regulators’ concerns, the size of the penalty could be reduced or restructured.
As part of their inquiry, European officials examined reports provided by X, including its risk assessment filed in September 2023 and a transparency report published in November that same year. According to the European Commission, these documents—along with responses to formal requests for information—highlighted significant compliance gaps, particularly in relation to the spread of illegal content, such as materials linked to the Hamas attacks on Israel, and the effectiveness of the platform’s content moderation tools, including its Community Notes feature.
At the core of the investigation are X’s policies around content moderation. Since Musk’s acquisition of the platform in 2022, the company has significantly scaled back its enforcement of certain content policies, promoting a “free speech” philosophy that regulators say has enabled the proliferation of hate speech, disinformation, and illegal content. A separate, broader EU investigation is also underway and could result in further regulatory action. According to officials involved in that probe, X has allegedly become a hub for harmful content due to its minimal intervention approach.
“On the basis of the preliminary investigation conducted so far, including on the basis of an analysis of the risk assessment report submitted by X in September, X’s Transparency report published on 3 November, and X’s replies to a formal request for information, which, among others, concerned the dissemination of illegal content in the context of Hamas’ terrorist attacks against Israel, the Commission has decided to open formal infringement proceedings against X under the Digital Services Act,” the Commission stated at that time.
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