The European Union has issued serious warnings about Elon Musk’s social media platform X. Besides this platform, the EU indicated potential penalties for Musk’s SpaceX and Neuralink.
Potential EU Penalties
The EU is contemplating imposing monetary fines on Elon Musk’s X platform. These penalties could extend not only to the revenues from the platform itself but also to the revenues from Musk's other projects. Under the Digital Services Act, authorities can impose fines of up to 6% of global annual revenue for violations such as content moderation and transparency deficiencies.
Regulation and X Platform
Elon Musk’s X platform successfully avoided regulations under the EU’s Digital Markets Act last month due to minimal market impact. Nevertheless, it remains under scrutiny due to its content moderation practices. The challenges faced by the X platform in controlling harmful content and misinformation, alongside Musk's high visibility, underscore the importance of this regulation.
Tesla’s Financial Moves and Political Support
Elon Musk's Tesla has redistributed its Bitcoin assets to new wallets, involving the allocation of publicly held Bitcoin across multiple addresses through various transactions, marking the first such financial activity in two years. Despite ongoing issues with the EU’s Digital Services Act, Musk continues to strongly support Donald Trump in the U.S. elections, contributing $75 million to Trump's presidential campaign. These developments reflect the financial risks faced by Musk’s companies under EU regulations.
Though Musk has recently resolved issues with Brazil, challenges in the European region could pose greater difficulties for the future of X.