EU Warns Elon Musk’s Companies of Significant Financial Penalties

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The European Union (EU) has issued serious warnings regarding Elon Musk’s social media platform, X. Besides this platform, the EU indicated that revenues from Musk’s other businesses, such as SpaceX and Neuralink, could also be subjected to penalties. This measure may increase the financial risks for Musk’s companies under the EU’s Digital Services Act (DSA).

Potential Penalties Ahead

Recent reports reveal that the EU is contemplating imposing monetary fines on Musk’s X platform. These penalties could encompass not only the revenues generated by the platform but also those accrued from Musk’s other ventures. The Digital Services Act empowers authorities to levy fines of up to 6% of the global annual revenue for violations like content moderation and transparency deficiencies.

Musk Evades Regulation

However, Musk’s X platform successfully avoided regulations under the EU’s Digital Markets Act (DMA) last month due to minimal market impact. Nevertheless, the platform remains under scrutiny due to its content moderation practices.

The challenges faced by the X platform in controlling harmful content and misinformation, coupled with Musk’s high visibility, underscore the importance of this regulation. Even though it surpasses the requirements of the Digital Markets Act, X is still subject to regulatory oversight under the Digital Services Act.

Additionally, Elon Musk’s Tesla has distributed its Bitcoin assets to new wallets. This move involves allocating publicly held Bitcoin across multiple addresses through various transactions, marking the company’s first financial activity of this kind in two years.

Despite ongoing issues with the EU’s Digital Services Act, Musk continues to strongly support Donald Trump in the U.S. elections, resulting in a $75 million donation to Trump’s presidential campaign.

These developments reflect the financial risks faced by Musk’s companies under EU regulations. Although he has recently resolved issues with Brazil, problems in the European region could pose greater challenges for the future of X.

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