The first decisions in the proceedings against X under the EU Digital Services Act (DSA) will be made in Brussels in the coming weeks or months. Among other things, the law requires large online platforms to delete false information and “illegal content” such as glorification of terrorism or depictions of sexual violence more quickly. The laws of the member states are decisive – in Germany, for example, the spreading of Nazi propaganda is prohibited.
EU Commission found many deficiencies
The commission complains about a number of violations on Musk’s platform: Even who is behind advertising on X is often not transparent. The company also does not release sufficient data for research purposes. So far, the Commission has not made a final decision on its action against X. However, penalties of up to six percent of global annual sales could be due for each of the allegations if Musk does not give in to pressure from Brussels.
There is a risk of high fines
The Commission has leeway here. According to the law, the basis for calculating the fine is the turnover of the “provider” of the affected online service, which “exercises a decisive influence on the platform”. This provider could be both a company and an individual, explained commission spokesman Thomas Regnier when asked by the AFP news agency. If it wants to increase the penalties, the EU Commission could use the business figures of all of billionaire Musk’s companies – including the space company SpaceX and the electric car manufacturer Tesla, which reported sales of around 97 billion euros last year. According to calculations by the AFP news agency, the maximum fine could increase 30-fold, from just under 200 million euros just for platform X to almost six billion euros. This applies to each of the three allegations that have been officially raised so far, as well as to two proceedings in which the investigations are still in their early stages.
To date, there is no case law on such a case
According to Brussels lawyer Romain Rard, penalties of this magnitude are “conceivable” under European law, but “much riskier because they could be challenged before the European Court of Justice in Luxembourg.” So far there is no case law that the Commission can use as a guide. “In the end, the judiciary decides,” Rard told the AFP news agency. Musk, for his part, has already announced that he wants to remain tough on the EU. “We are looking forward to a very public battle in court,” he said in July when the EU Commission announced its allegations.
Commission could block X
As a last resort, the EU Commission would even have the tools under the digital law to block Musk’s platform. Brussels could appeal to a court at X’s European headquarters in Ireland to obtain a temporary block on the platform while the EU proceedings are ongoing. However, unlike in Brazil, where X is currently not available, such a blocking is considered unlikely in Europe. Jan Penfrat from the network user association European Digital Rights (EDR) calls a block an “absolute emergency solution”. The EU Commission must be careful when taking such steps because with a block it limits access to information, he warns. Musk and his supporters could then accuse the EU of “censorship”.
