The European Commission has set its sights on Elon Musk’s company X, alleging potential violations of the Digital Services Act (DSA). The investigation, initiated in December 2023, raised concerns about X’s content moderation, use of AI, data provision, and advertising transparency. If confirmed, X could face fines of up to $200 million, representing 6% of its global annual revenue.
One of the main issues raised by the Commission is X’s verification system, which has been criticized for failing to meet industry standards and allowing malicious actors to exploit it. Additionally, X’s advertising practices and data provision to researchers have also come under scrutiny.
Commissioner Thierry Breton emphasized that the findings are not final and that X has the opportunity to defend itself. However, if found in violation of the DSA, X may face financial penalties and increased oversight.
In related news, Elon Musk is facing a lawsuit from Tesla shareholders, accusing him of diverting AI talent and resources from Tesla to xAI. Stay tuned for updates on this developing story.
