New EU inquiry into Musk’s X acquisition opens the door to a bigger fine
the European Union (EU) has intensified its scrutiny of Elon Musk’s social media platform, X, following its acquisition by xAI for $33 billion.Regulatory officials are currently evaluating whether to increase the already ample fines that X faces under the digital Services Act (DSA). This inquiry arises from the acquisition’s potential to change the company’s revenue and liability, as the DSA allows fines of up to 6% of a company’s annual global revenue. Following the merger, xAI’s valuation is reportedly $80 billion, which may further complicate X’s regulatory challenges.the EU had previously accused X of violating the DSA by misleading users regarding its verification processes and lacking transparency in its advertising practices. This investigation adds X to a list of American tech companies facing EU scrutiny,following critically important penalties against Apple and meta for similar violations.
New EU inquiry into Musk’s X acquisition opens the door to a bigger fine
European Union regulators are scrutinizing Elon Musk’s X after the company’s $33 billion buyout by xAI.
Musk’s X has already been facing a steep fine from the European Commission under the Digital Services Act, but a new request from regulators could increase the fine further. EU tech enforcers sent additional questionnaire to the corporation Thursday.
This recent questioning stems from how xAI’s acquisition of X in March changes the size of the fine. The DSA allows the Commission to impose a fine up to 6% of a company’s annual global revenue.
The valuation of xAI after the deal, according to a social media post by Musk, is listed as $80 billion. European regulators are also investigating whether Musk’s other companies, such as SpaceX or Neuralink, should be added to the fine.
Commission spokesperson Thomas Regnier released a statement saying, “We are following closely changes in the corporate structure of X, as we would [with] changes in any other designated platform.”
In December 2023, the EU began investigating whether the company had violated the DSA. The Commission has accused the platform of breaching the DSA by changing the X checkmark, which “deceives users,” and that the business has not been sufficiently transparent about its advertising and data practices. Earlier in June 2025, X included a Disclaimer on how the site’s checkmark program functioned in an attempt to appease EU regulators.
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X is not the only American technology company to be investigated by the EU. In April, the EU ordered Apple and Meta to pay a combined $800 million fine. Both firms were fined under the EU’s Digital Markets Act, a law closely related to the DSA.
Earlier in April, before the fines against Apple and Meta, the United States launched a global 10% tariff that included European imports. Since then, President Donald Trump has said the EU has been “very difficult to deal with.” Trump has stated that unless a trade deal can be negotiated, the tariff on EU imports will be increased to 50% on July 9.
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