Elon Musk’s social media platform X could be facing fines exceeding $1 billion from European Union regulators for allegedly breaching the Digital Services Act (DSA), according to an April 4 report by The New York Times, which cited four sources familiar with the investigation.
The DSA, implemented in 2022, is designed to curb illegal and harmful content on major online platforms. The European Commission launched formal proceedings against X in 2023, raising concerns about potentially deceptive practices—such as selling verified check marks—and inadequate content moderation.
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If confirmed, this would mark the EU’s first enforcement action under the DSA. In addition to financial penalties, which could be announced as early as this summer, X may be required to alter core features of its platform to comply with the law.
Regulators are also examining whether X’s limited oversight has allowed disinformation and hate speech to proliferate. Fines under the DSA can reach up to 6% of a company’s global revenue, and officials are reportedly considering whether to calculate penalties based on the combined revenue of all companies owned by Musk, including SpaceX.
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The New York Times notes that X could potentially avoid penalties by complying with the European Commission’s demands.
In response, X’s Global Government Affairs team issued a statement warning that if the EU proceeds, it would amount to “an unprecedented act of political censorship and an attack on free speech.”
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“X has gone above and beyond to comply with the EU’s Digital Services Act, and we will use every option at our disposal to defend our business, keep our users safe, and protect freedom of speech in Europe,” the company said.
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Since Elon Musk acquired the platform in 2022—when it was still known as Twitter—X has faced mounting criticism over its handling of disinformation and lax content moderation. Musk himself has sparked controversy for amplifying Kremlin-aligned narratives, including memes mocking Ukrainian President Volodymyr Zelensky and claims that Ukraine, not Russia, is blocking peace efforts.