The European Commission has paused one of its investigations into Elon Musk’s X for violating the bloc’s digital transparency regulations as it focuses on concluding trade negotiations with the US.
Brussels had originally intended to finalize its examination of the social media platform before the EU’s summer break, but this deadline will now be missed, according to sources familiar with the situation. The decision is expected to be postponed until progress is made in the EU-US trade discussions. “It’s all interconnected,” one insider remarked.
The EU has initiated multiple investigations into X under the Digital Services Act, a framework designed to enforce stricter regulations on major online entities.
The regulations have sparked tensions between Brussels and US tech giants, supported by the former Trump administration, who argue that American companies are being unfairly targeted by the EU, infringing on the freedom of speech principles upheld by the Maga movement.
Last year, Brussels identified X as potentially violating its rules due to deceptive design, lack of data access, and transparency shortcomings. While the EU can levy fines equivalent to 6% of the platform’s global revenue, penalties are anticipated to be set below this threshold.
The European Commission, responsible for EU trade policy, has been in talks to secure a trade agreement with the US since April, following the announcement of reciprocal tariffs by the US president against the bloc. The ongoing negotiations have heightened the sensitivity of decisions related to the US, as escalating transatlantic trade disputes are undesirable.
Despite recent disagreements between Trump and Musk, particularly regarding the 2024 election, the US president has criticized EU penalties on American companies, labeling them as a “form of taxation” and likening fines on tech firms to “overseas extortion.”
Commission president Ursula von der Leyen has affirmed that Brussels will not alter its digital regulations in response to US pressure. In April, the EU imposed a total of €700 million in fines on Apple and Meta for breaching antitrust regulations.
Unlike investigations under the Digital Markets Act, there are no strict deadlines for cases under the DSA, granting the EU flexibility in announcing formal findings. The EU is also examining Meta and TikTok for content moderation compliance.
The commission emphasized that the proceedings against X under the DSA are ongoing and reiterated its commitment to enforcing digital legislation effectively, including the Digital Services Act and the Digital Markets Act.
European lawmaker Anna Cavazzini urged the commission to swiftly proceed with its investigation into X and emphasized the importance of maintaining EU regulations in tariff negotiations with the US.
In addition to investigating X’s transparency violations, Brussels is also scrutinizing the company’s content moderation practices following Musk’s hosting of Alice Weidel, a far-right figure, on the platform before Germany’s elections.
Some European lawmakers and the Polish government are advocating for an inquiry into Musk’s Grok chatbot after it disseminated antisemitic content recently.
X expressed disagreement with the commission’s assessment of its compliance efforts with the Digital Services Act and the interpretation of the Act’s scope.
