EU Threatens Massive Fines, Targeting All of Elon Musk’s Companies | Tech News

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The European Union is considering calculating fines against Elon Musk’s social media platform X by including revenue from his other companies like SpaceX and Neuralink. This move could greatly increase potential penalties if X is found to violate the EU’s Digital Services Act, which requires online platforms to control illegal content and disinformation.

The European Union is warning that it might calculate fines against X (formerly Twitter) by including revenue from Elon Musk’s other companies like SpaceX, Neuralink, xAI, and the Boring Company. As per a Bloomberg report, this could make any penalties on X much higher than expected.

Can The EU Actually Do This?

Well, Kind of! One of the DSA provisions is that online platforms are liable to be fined by the EU up to 6% of their global annual revenue if they don’t manage illegal content and disinformation correctly or are not transparent. Mostly, the basis for fines is the revenue of the concerned company. However, due to the fact X is a privately owned company controlled solely by Musk, the EU is considering including the earnings of his other businesses in the calculation.

Why Is This Important?

The European Commission is initiating an investigation into X for possible DSA breaches. They seem to be more focused on whether X is doing enough to monitor illegal content that is posted on its platform. The EU’s hardline approach against harmful online content has resulted in some fiery confrontations with Musk.

We look forward to a very public battle in court, so that the people of Europe can know the truth https://t.co/nKBGEPxeEa

— Elon Musk (@elonmusk) July 12, 2024

After Thierry Breton, the EU’s former tech chief, resigned in September, Margrethe Vestager took over the responsibility of enforcing the DSA. She’s now the one who will decide on any penalties and how they’re calculated.

What About Tesla?

Remarkably, Tesla’s revenues will be excluded from any possible fines. Although Musk is the CEO, but Tesla is a publicly traded company and not entirely under his control. Thus, the EU redirects its focus only on those companies that are completely owned by Musk.

The EU hasn’t made a final decision yet on whether to penalize X, and if they do, how big the fine will be. X would have the chance to challenge any decision, but ultimately, the EU Commission has the final say.

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