Elon Musk in the Crosshairs: EU Targets X with Billion-Dollar Fine

In a bold regulatory offensive, the European Union is preparing to slap Elon Musk’s social media platform, X, with fines that could exceed $1 billion, citing repeated violations of the EU’s landmark Digital Services Act (DSA). According to officials familiar with the matter, Brussels has concluded its preliminary investigation and is preparing what could become one of the most consequential enforcement actions in the EU’s tech regulation history.

The proposed penalties stem from allegations that X failed to adequately police disinformation, particularly in the wake of major geopolitical events, and refused to cooperate with independent researchers tasked with analyzing harmful content on the platform.

But the stakes go far beyond Silicon Valley, or even the EU. The move threatens to escalate already simmering tensions between Brussels and Washington, as it indirectly places Europe in confrontation with President Donald Trump, a vocal supporter of Elon Musk and an outspoken critic of EU regulation.

The European Commission initiated formal proceedings against X in December 2023 to assess potential breaches of the Digital Services Act (DSA). The investigation focuses on several key areas including obstructing independent researchers. The Commission has expressed concerns that X may be hindering independent researchers by restricting access to public data, thereby impeding the monitoring of disinformation trends. “Platforms operating in the European Union must comply with our laws. No one, no matter how powerful, is above that,” said EU Commissioner Thierry Breton in a statement. “The DSA is not optional.”

European officials also suggested that Musk’s dual role as CEO of X and owner of other ventures such as Tesla and SpaceX may play into how the fine is calculated, with revenue from Musk’s broader empire potentially being used to determine the final figure.

In a defiant statement posted Wednesday, X’s Global Government Affairs office said the company was being unfairly targeted and that the EU’s actions amounted to “an unprecedented act of censorship and an attack on free expression.”

This clash is not just about one company or one man, it’s the latest chapter in what some experts are calling the Global Tech Cold War. As the EU doubles down on regulation, and the U.S. under Trump embraces a deregulatory agenda, the transatlantic consensus on digital governance appears to be unraveling. X is not the only target. Meta , TikTok, Apple, and Google are all under various stages of investigation for possible DSA violations. But none carry the political baggage, or the media spotlight, that Musk’s platform does.

The EU is expected to formally announce its findings and proposed penalties within the next few weeks. Under the DSA, companies found in violation can be fined up to 6% of global revenue, a figure that would put Musk’s platform on the hook for well over $1 billion, depending on how regulators assess its income streams.

If the EU proceeds with the fine, X will likely appeal, setting off a lengthy legal process that could stretch for years. In the meantime, the political fallout is already being felt, with nationalist and populist politicians across Europe warning that the EU is overreaching.

In a world where social media shapes elections, markets, and international relations, the EU vs. X could become the defining tech battle of the decade.