EU Commission Considering Imposing Fines Under DSA
Elon Musk, CEO of Tesla, may face astronomical fines, Bloomberg reported on the 17th (local time). This is because the European Union (EU) could calculate the fines not only based on the revenue of the social networking service X (formerly Twitter) but also include the revenues of SpaceX and Neuralink.
The EU Commission announced preliminary investigation results in July stating that X violated the Digital Services Act (DSA). Companies that violate the DSA can be fined up to 6% of their annual global revenue. According to sources, the Commission is currently considering including the revenues of SpaceX and Neuralink in addition to X's revenue when calculating the fines.
The EU introduced the DSA last year to crack down on the spread of false information and illegal content online. The "blue check" displayed next to accounts on X was originally a mark certifying verified accounts such as public figures or government officials. However, after Musk's acquisition, anyone who pays can display the blue check. This affects users' decision-making. Cases of abuse to deceive users have been detected. The Commission also pointed out that X fails to meet advertising transparency requirements and does not sufficiently provide access to public data as required by the DSA.
Bloomberg cited sources saying the Commission is reviewing whether to impose fines on X as a company or on Musk personally. X, SpaceX, and Neuralink are companies where Musk exercises sole control. Tesla was excluded because Musk does not have complete control over it.
According to foreign media reports, multiple sources said the Commission has not yet made a final decision that X violated the law but intends to impose a high enough fine to prevent repeated violations by X.
However, after the fines are imposed, X can appeal. Legal procedures are also possible. Bloomberg stated that if X proposes solutions to alleviate the EU's concerns, it may avoid fines.
Meanwhile, Musk has stated on his X that he will fight the DSA fines publicly in court. In August, ahead of a conversation with former President Donald Trump, when the EU sent a letter urging compliance with the DSA due to concerns about the spread of false information, Musk responded by posting a meme from the movie "Tropic Thunder" containing profanity.
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