EU Targets X Following Apple and Meta... Faces 6% Revenue Fine Risk

Flood of False Information and Illegal Content... Allegations of DSA Violations

Elon Musk, CEO of Tesla, faces regulatory action from the European Union (EU) against his social media platform X (formerly Twitter). The EU intends to hold X accountable for the flood of false information and illegal content related to the Israel-Hamas war that erupted in October last year. X is at risk of being fined over 200 billion won.

On the 4th, Bloomberg News, citing anonymous sources, reported that the EU Commission is preparing to announce the preliminary investigation results on violations of the Digital Services Act (DSA), which could lead to a fine amounting to 6% of X’s global revenue.

[Image source=AP Yonhap News]

Bloomberg stated that Thierry Breton, the EU Commissioner for Internal Market, is expected to announce the preliminary investigation results before the EU’s summer recess.

Sources indicated that if X does not take corrective actions following the Commission’s preliminary findings, authorities could make an official decision before the end of the year. If found in violation of the DSA, the platform could face fines up to 6% of its global revenue. Repeated violations could even result in expulsion from the European market. X’s advertising revenue last year is estimated at approximately $2.5 billion (about 3.455 trillion won), putting it at risk of a fine up to $150 million (about 207.3 billion won).

This follows the EU Commission’s launch of a DSA violation investigation in December last year. Authorities have been investigating how platforms such as X, Meta, AliExpress, and TikTok handle content following the Israel-Hamas war. The probe targets the rampant spread of false war-related information, harmful or illegal content, and hate speech. The Commission stated, "Regulatory procedures against X are ongoing, and there is no time limit for the next steps."

The EU regulates big tech companies through the DSA and the Digital Markets Act (DMA). While the DMA aims to curb the unfair practices of big tech, the DSA emphasizes their social responsibility. The DSA, which came into effect in August last year, monitors social media, online marketplaces, app stores, and others for hate speech, terrorism, misinformation, and offensive content.

Previously, the EU provisionally concluded that Apple and Meta Platforms, Facebook’s parent company, violated the DMA and notified each company accordingly.