E.U. prepares major penalties against Elon Musk's X

European Union regulators are preparing significant penalties for Elon Musk's social media platform X for violating the Digital Services Act aimed at curbing illicit content and disinformation. The penalties may include a fine exceeding $1 billion and demands for product changes. The announcement is expected this summer, marking the first application of the law against a major platform.

Authorities are balancing the size of the fine with potential diplomatic tensions with the U.S. due to ongoing trade disputes. X is also under a broader investigation for its handling of user-generated content, viewed as facilitating hate speech and disinformation that threaten democracy in the E.U.