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EU Intensifies Probe Into X’s Corporate Restructuring After xAI Takeover

Regulators circulated detailed inquiries on X’s ownership ahead of potential fines under the Digital Services Act.

xAI logo is seen in this illustration taken, February 16, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • Commission inquiries target structural changes since xAI’s $33 billion purchase of X in March.
  • Investigators are assessing how post-acquisition shifts comply with transparency and designation rules under the DSA.
  • Officials are examining potential breaches of DSA deceptive design provisions, notably X’s paid blue checkmark verification.
  • X has disputed the Commission’s July 2024 findings and added disclaimers to its verification scheme this month.
  • Regulators have signaled they may decide on fines before the European Commission’s August recess.