The EU threatens X with a $1 billion fine if it doesn't allow itself to be censored.

The regulatory authorities of the European Union are reportedly considering imposing a 1 billion dollar fine on X, the social network owned by Elon Musk, taking into account the revenues of other companies under his control, such as Tesla and SpaceX, according to reported The New York Times.

According to the April 3 report from the mentioned outlet, which cites four sources familiar with the matter, European officials accuse X of having violated the Digital Services Act, an authoritarian regulation that seeks to censor freedom of expression in Europe.

The European Union plans to use a specific clause of this regulation to determine the amount of the fine, including the revenues of Musk's other companies.

This legislation, in effect since October 2022, aims to regulate information on digital platforms and prevent, according to them, "illegal or harmful behavior on the internet." In case of non-compliance, it allows for penalties of up to 6% of the global revenue of the affected companies.

Consulted by The New York Times, the European Commission—the EU's executive body—avoided commenting on this particular case, although it reiterated its commitment to apply the regulations "fairly and without favoring or disadvantaging any company."

Meanwhile, X's Global Government Affairs team issued a statement calling the EU's possible plans an "unprecedented act of political censorship and an attack on freedom of expression."

"X has gone above and beyond to comply with the EU's Digital Services Act, and we will use all options at our disposal to defend our business, keep our users safe, and protect freedom of expression in Europe," the statement concluded.

In addition to the possible financial penalty, the European Union authorities could require modifications in the operation of the X platform, although the full scope of any penalties will be defined in the coming months.

However, according to The New York Times, there is a possibility of reaching a consensual resolution if the company agrees to implement "adjustments that satisfy the regulators' demands," that is, censorship.

One of the officials consulted by the newspaper also noted that X is the subject of a second investigation, focused on its content moderation policy. According to the accusations, the platform has facilitated the proliferation of "hate speech and misinformation," the typical excuse of authoritarian governments to censor people.

The initial investigation was launched by the EU in 2023. In a preliminary resolution issued in July 2024, it was concluded that X violated the Digital Services Act by refusing to share private user information.

In response, X presented a detailed response that included hundreds of objections. Elon Musk, meanwhile, claimed that he had been offered an out-of-court settlement, and that European regulators had suggested that if he censored certain content covertly, the platform could avoid being sanctioned.