Elon Musk’s social media site X could face significant fines for its alleged failure to monitor harmful content – the most recent action in an ongoing crackdown by European Union regulators against major tech companies.
The commission had declared last December that they were investigating X for the dissemination of illegal content and misinformation related to the Israel-Hamas conflict.
The European Commission, the EU’s competition watchdog, is preparing to present formal charges against X in the next few days, according to reports from Bloomberg citing sources familiar with the situation.
The EU’s Internal Market Commissioner Thierry Breton is anticipated to announce preliminary results before July 25.
If the EU takes official action against X, the company could potentially face fines amounting to 6% of its global revenue.
Considering X is privately owned, the exact amount of money at stake is unknown.
EU authorities suggest that X may have infringed the Digital Services Act – a comprehensive regulation that became effective last August and obliges the largest tech companies to manage content, safeguard user privacy, and mitigate risks to the public.
TikTok and Instagram’s parent company Meta are also subjects of investigation.
“The formal proceedings against X are still in progress,” stated a spokesperson from the European Commission. “The DSA does not specify any time limits for formal proceedings. The Commission will make a decision once it has thoroughly evaluated all pertinent and necessary information gathered and followed proper protocols.”
The Post has contacted X for a response.
Musk obtained X, previously known as Twitter, for $44 billion in late 2022.
He has been leading a significant transformation at the company, pivoting towards a subscription-based model as X encountered a decline in advertisers who were cautious of the outspoken billionaire’s more relaxed approach to content moderation.
The European Union has intensified enforcement efforts in recent months for potential violations of the DSA and a separate major competition law, the Digital Markets Act, which came into effect in March and established regulations governing the conduct of tech companies identified as the internet’s “gatekeepers.”
Earlier this month, authorities accused Meta of breaching the Digital Markets Act by coercing customers into a restrictive “pay or consent” model for ads on Instagram and Facebook.
A week prior, the EU charged Apple with stifling developers in its App Store.
Both companies could face substantial fines if found to have violated the law.
