Overview

• The European Union is finalizing penalties against X, including a fine exceeding $1 billion and mandatory platform changes, expected to be announced this summer.
• The case marks the first major enforcement of the Digital Services Act, a law designed to regulate online platforms and combat disinformation.
• Regulators found X violated the law by failing to provide data to researchers, lacking advertising transparency, and inadequately verifying user accounts.
• Elon Musk and X have criticized the EU's actions as censorship and plan to contest the penalties, potentially leading to a legal confrontation.
• A broader EU investigation into X's moderation practices is ongoing, with the possibility of additional penalties in the future.