EU Hands Final Warning to Elon Musk's X Over Dangerous Content

Potential Fines Up to 6% of Revenue Under Digital Services Act

Elon Musk’s social media platform X is poised to receive a formal warning from the European Union for failing to address dangerous content, as reported by Bloomberg. This marks the third instance of EU regulators showcasing their resolve against Big Tech firms in recent weeks. The EU's Internal Market Commissioner, Thierry Breton, is expected to announce the warning prior to the EU’s summer recess, according to anonymous sources familiar with the situation.

X could face severe consequences if it does not adequately respond to the European Commission’s preliminary findings. Post-warning, the commission has the authority to make a formal decision by the end of the year, potentially leading to fines amounting to 6% of X’s revenue for non-compliance. This action follows an investigation initiated by the EU in December, scrutinizing X’s content management practices, particularly following the Hamas attacks on Israel on October 7.

Other Tech Companies’ Situation

This regulatory move against X is part of a broader crackdown on major technology platforms. Other prominent companies under investigation include Meta Platforms Inc., AliExpress, and ByteDance Ltd.’s TikTok. The EU’s Digital Services Act (DSA) and Digital Markets Act (DMA) have empowered regulators to take such actions. The DSA, in effect since last August, mandates strict content regulations for social media platforms, online marketplaces, and app stores. It targets misinformation, hate speech, terrorist propaganda, and ads for unsafe products.

Implication of the Law

The DMA, effective from March 7, lays out comprehensive rules derived from antitrust enforcement principles aimed at preventing monopolistic behaviors and ensuring fair competition. Recently, the EU issued formal warnings to Apple Inc. and Meta over unfair practices under the DMA.

The EU's formal warning to Elon Musk's X underscores the EU's increasing enforcement rigor under the Digital Services Act. Similar actions against other tech giants like Meta, AliExpress, and TikTok signal a growing regulatory