X faces mega fine as Brussels turns the screw on tech

US president Donald Trump is likely to have that seemingly permanent grin wiped off his face this week amid reports that Elon Musk’s X is facing a huge fine from EU regulators for alleged violations of the Digital Services Act.

Trump has already slapped 20% tariffs on the EU imports, but EU officials insist that their investigation into X is proceeding independently of these negotiations. Even so, Trump has long been a fierce critic of EU regulators.

The inquiry, which began in 2023, led to a preliminary ruling last year stating that the social media platform had violated the law.

According to a report in the New York Times, the penalties – which are anticipated to be announced this summer – are likely to include a fine that could exceed $1bn (£780m) and mandated product modifications.

Four separate sources “familiar with the matter” told the New York Times, EU officials accuse X of failing to monitor user-generated material and, in the process, creating a safe haven for illegal hate speech, false information and other illicit content, threatening democratic values within EU nations.

A resolution remains possible if X agrees to implement changes that address regulatory concerns, officials said.

A spokesperson for the European Commission said: “We have always enforced and will continue to enforce our laws fairly and without discrimination toward all companies operating in the EU, in full compliance with global rules.”

The Digital Services Act is more centred on consumer protection law and ensuring a safe digital environment, operating within the realm of information society services. It runs alongside the Digital Markets Act, which leans towards competition law, aiming to prevent unfair practices by digital platforms holding a substantial market share.

Last month, the Commission announced that both Google parent Alphabet and Apple were facing enforcement action under the Digital Markets Act.

In preliminary findings, both Google Search and Google Play Store were found in breach of the legislation. Alphabet does have the chance to exercise its rights of defence by examining the documents in the Commission’s investigation file and replying in writing to these preliminary findings.

Meanwhile, Apple has been told by the Commission that it will also have to open up access to the iOS operating system, which is currently solely available on Apple devices, including the iPhones and iPads.

This marked the first time the EU had issued an order to a company for infringing regulations set out in the DMA, although Apple still has a chance to respond.

Breaches of the DMA and DSA can result in companies being fined 10% of worldwide revenue.