X faces new EU probe for illegal content, policy violations

The European Union has launched an investigation into Elon Musk’s social platform X (formerly Twitter) for violations of the Digital Services Act (DSA), aiming to compel the company to better moderate illegal content and disinformation. Proposed sanctions include a substantial fine and mandatory changes to the platform's core functions.
As reported by Cryptopolitan, this is the second EU-led investigation into X. The first case was opened in 2023, and after a year, European regulators issued a preliminary ruling stating that the company had breached the law. Now, the commission claims that X failed to provide access for researchers, did not offer transparent data on advertisers, and refused to verify the identity of users who pay for the “verified” blue checkmark.
According to the Associated Press, citing sources familiar with the matter, EU officials are building a case that X has become a hub for spreading illegal content, including hate speech and political disinformation — a threat to democracy across all 27 EU member states. Regulators argue that X’s hands-off policy allows harmful material to circulate too easily, without accountability.
New case emerges amid strained US-EU trade tensions
The effort to fine X comes amid heightened transatlantic tensions. Earlier this week, Donald Trump imposed a new round of tariffs on European goods. Still, regulators involved in the X case say the investigation is unrelated to trade negotiations.
The final penalty amount will likely be determined by summer, but under the DSA, fines can reach up to 6% of a company’s global revenue. Meanwhile, the European Commission is open to settling the case if X agrees to major changes aligning the platform with EU expectations — though regulators doubt such a deal is realistic.
Back in July 2024, shortly after the commission published its initial findings, Elon Musk declared that he was ready for a “very public courtroom battle.” He has openly criticized European internet policies as censorship and believes that users expect him to resist both fines and forced changes.
However, if Musk refuses to comply, the case could escalate into a full-scale legal confrontation over sovereignty and who holds authority over digital platforms operating in Europe.
As we wrote, billionaire Elon Musk has sold his social media platform X (formerly Twitter) to his artificial intelligence startup xAI in a surprise all-stock transaction, a move that has triggered legal and investor scrutiny.