Bloc weighs political and legal pressure as landmark content probe nears conclusion
The European Union may impose a long-anticipated fine on Elon Musk’s X platform before the end of 2025, nearly two years after opening a landmark investigation under its sweeping digital content law. The probe, launched in December 2023, was the EU’s first enforcement action under the Digital Services Act (DSA), but despite early declarations that X had broken the rules, the bloc has yet to deliver a penalty.
Brussels now faces an altered political landscape. Since Donald Trump returned to the White House with Musk among his closest allies, EU officials have had to consider the diplomatic fallout of sanctioning the billionaire’s social media platform. The administration in Washington has been increasingly vocal about its opposition to Europe’s strict tech regulations.
During a visit to Brussels this week, US Commerce Secretary Howard Lutnick openly urged the EU to loosen parts of its digital rulebook, suggesting that doing so could help secure reduced tariffs on European steel. “Resolve these outstanding cases that are old,” he said, in a remark widely interpreted as referring to the X probe.
The EU, still recovering from an earlier trade standoff sparked by Trump’s tariffs, is wary of reigniting tensions, especially at a moment when it is trying to influence US strategy on the war in Ukraine. Officials in Brussels insist American pressure is not dictating their pace, stressing that they are focused on building a watertight case capable of surviving a likely legal challenge from Musk.
Even so, the European Commission is determined not to let the investigation linger much longer. A fine is still expected before the year ends, though some within the bloc believe diplomatic considerations could force a delay.
Fine Could Be Calculated on Musk’s Entire Empire
The EU has not disclosed when the X investigation will formally conclude, but tech policy chief Henna Virkkunen said recently she expected “some of the investigations”, including the one involving X to wrap up in the coming weeks.
One of Brussels’ biggest decisions concerns how the fine should be calculated. Under the DSA, penalties can be based either on the turnover of the specific platform under investigation or on the revenues of the entire parent company. In X’s case, that raises the possibility of a fine tied to Musk’s broader business empire, including Tesla, significantly increasing the financial hit.
EU spokesperson Thomas Regnier said the Commission has until the point of a final decision to define how it will classify X for the purpose of the sanction. Under existing law, fines can reach up to six percent of a company’s global annual revenue.
Any final penalty must be approved by the full College of Commissioners before it is imposed.
Pressure on Brussels Over Delayed Enforcement
The investigation into X covers a wide range of possible violations, including the spread of illegal content and the platform’s handling of disinformation. However, any immediate fine would stem from earlier infractions cited by the Commission in July 2024.
At that time, regulators said X misled users through its redesigned blue checkmark system, which allowed anyone to purchase verification, and failed to provide adequate transparency around advertising. Brussels also accused the company of refusing to grant researchers sufficient access to public data, another requirement of the DSA.
In response, X introduced a disclaimer to its blue checkmark in June 2024, but regulators said the gesture did not fully address their concerns.
Since then, pressure has mounted on the EU to enforce its digital regulations robustly. In January 2025, the Commission demanded that X supply detailed information on its algorithms and any recent changes, signalling that the probe remains active and far-reaching.
The coming months will determine whether Brussels can balance legal rigor, political realities, and the need to assert authority over a global platform closely tied to Washington’s most unpredictable political figure.
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