Potential EU Fines Towards Elon Musk Could Exceed Initial Estimates
Elon Musk's social media platform X, worth around $10 billion, has been under scrutiny for its moderation and advertising policies. The European Union (EU) started investigating Musk and X in 2023, following the implementation of its new Digital Services Act.
The EU is considering levying fines against Musk due to his unwillingness to cooperate with the investigation. At issue was X's new policy of selling "authenticity" in the form of a blue checkmark, and its refusal to be transparent with regards to advertising.
The dispute with the EU comes after a month-long absence of X in Brazil due to a disagreement over content moderation policies in August 2023. Musk cited free speech as a reason for his initial resistance. The standoff ended when Musk complied with Brazil's demands, and X returned to the country.
The fines for Musk's alleged trespasses would be 6% of X's yearly global revenue, if applied. However, the EU is currently deciding if these fines should apply to all of Musk's wholly owned companies, not just X. This could potentially include the revenue of SpaceX, Neuralink, and the Boring Company in determining the cost of the potential fines.
Musk has stated he looks forward to a "very public battle in court" to reveal the truth. However, the fines could be avoided entirely if Musk "satisfies the watchdog's concerns."
In September 2023, Musk coordinated with the Trump campaign to censor an internal campaign report on JD Vance, and X also banned the journalist who shared the report. However, Musk's control over X does not extend to Tesla, as it is a public company. Musk has previously capitulated to demands to censor X from countries with more authoritarian demands, such as Turkey and India.
Traditional advertisers have left X, and it is now accepting money from various sources, including piracy sites and a medical website promoting ivermectin as a replacement for chemotherapy. This shift in advertising strategy has raised concerns about the platform's commitment to maintaining a safe and reliable environment for its users.
The ongoing investigations and controversies surrounding X highlight the challenges of regulating social media platforms and maintaining a balance between free speech and user safety. As the situation continues to evolve, it remains to be seen how Musk and X will respond to the growing pressure from regulators and public opinion.
The EU is considering fining Musk for his reluctance to cooperate with the investigation, particularly concerning X's new policy of selling authenticity and its refusal to disclose advertising details. With the potential application of fines being 6% of X's yearly global revenue, the EU is discussing whether these penalties should extend to all Musk's wholly owned companies, including SpaceX, Neuralink, and the Boring Company.
