Overview

• EU regulators have sent fresh inquiries to X regarding changes in its corporate structure following the $33 billion acquisition by Elon Musk’s xAI.
• The Commission is examining X’s restructuring under the Digital Services Act to assess potential infractions related to deceptive design and transparency lapses.
• Any confirmed breach of the DSA could trigger fines of up to 6 percent of X’s global annual turnover and lead to bans for repeat offenders.
• X recently added a disclaimer to its blue checkmark verification process in a bid to comply with EU regulations and forestall penalties.
• Regulators could announce a formal penalty before their August recess, building on preliminary findings from July 2024 that flagged deceptive design practices.