EU wants to enlarge fines against Musk
Date
10/20/2024 5:26:13 AM
(MENAFN) The European Union is reportedly contemplating a significant expansion of potential fines against Elon Musk's businesses when calculating penalties related to X (formerly Twitter), according to a Bloomberg report released on Thursday. Anonymous sources familiar with the situation indicated that the EU may include revenue from Musk’s other ventures, such as SpaceX, Neuralink, xAI, and The Boring Company, in its calculations for fines.
This scrutiny follows accusations from Brussels’ former tech czar, Thierry Breton, who claimed that X has not adequately managed illegal content on its platform, thereby violating the EU’s 2022 Digital Services Act (DSA). The final decision on whether to impose fines now rests with EU Commissioner for Competition Margrethe Vestager.
Bloomberg’s sources revealed that Musk has been warned that sales from his various private businesses could influence the potential fines against X. However, sales from Tesla Inc. would not be included in this assessment, as the electric vehicle manufacturer is publicly traded and not fully under Musk’s control.
Under the DSA, the EU has the authority to impose fines of up to 6% of a company’s annual global revenue for failing to effectively combat illegal content and disinformation, as well as for not adhering to the bloc’s transparency requirements. Nevertheless, the sources emphasized that no definitive decision to penalize X has been made, and discussions regarding the potential size of any fines are still ongoing. They noted that X might avoid penalties altogether if it complies with the EU's demands.
While X has yet to issue an official response to the report, Musk previously expressed his intent to challenge any DSA fines through a "very public battle in court," aiming to ensure that "the people of Europe can know the truth."
This situation highlights the EU's increasing regulatory scrutiny of tech companies and their responsibilities in managing content on their platforms. As negotiations continue, the outcome could have significant implications not only for Musk's various businesses but also for the broader tech landscape in Europe.
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