To avoid upsetting Trump: Brussels reportedly suspends DSA proceedings against X
Brussels planned a summer decision on X's DSA violations, but now may delay—reportedly to avoid upsetting Donald Trump ahead of the U.S. presidential election.
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As long as trade talks with the US government are ongoing, the EU Commission will apparently not announce the findings of its investigation into possible violations of the Digital Services Act (DSA) by the short message service X. This was reported by the Financial Times, citing several people familiar with the matter. Once there is clarity about what trade barriers will exist between the United States and the EU in the future, a decision in the proceedings could be made. No one wants to anger US President Donald Trump and exacerbate existing trade conflicts, the newspaper continues. It is advantageous that the DSA does not set a deadline for a decision.
Massive penalty possible
Several proceedings are pending against X in Brussels for possible violations of the DSA. Among other things, these relate to the use of the blue check mark that paying users receive, but which was used for verification when X was still called Twitter and did not belong to Elon Musk. The Commission also accuses the social network of a lack of transparency in advertising and a lack of support for science. In April, the New York Times reported that Brussels was preparing a massive fine of more than $1 billion. A decision was to be made by the summer. In order not to complicate negotiations with the US, this has now been put on hold.
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The action against X is considered the first significant attempt to enforce the provisions of the Digital Services Act and has become a point of contention with the current US administration. Behind the scenes, Musk's company reportedly submitted hundreds of objections, which the EU Commission has been processing. Elon Musk had announced his intention to fight any penalty in court and in public. A source told the New York Times that the proposed penalty could be so high because it is intended to set an example and deter other companies from violating the DSA.
With the DSA, the EU is requiring internet platforms to provide more transparency about how they moderate content and advertising. The most extensive obligations apply to very large online platforms (VLOPs), which X has been considered one of since April 2023. Because Musk took the service off the stock market, only estimates of its revenue under his leadership are available –. However, X is required to provide information to Brussels. Revenue is decisive for determining a possible penalty; in X's case, it would not be enough for a billion-dollar fine. According to the New York Times report, however, Brussels has considered including other directly controlled companies owned by the owner in the calculation. In Musk's case, that would be SpaceX.
(mho)
