The European Commission said Thursday it is monitoring changes in the corporate structure of Elon Musk’s social media platform X, following its acquisition by xAI in a $33 billion deal earlier this year.
A spokesperson for the Commission, the executive arm of the European Union, said it is seeking more information from the company. “We are following closely changes in the corporate structure of X, as we would changes in any other designated platform,” the spokesperson said.
The comment follows a report that regulators may be considering fines against X under the Digital Services Act, although the Commission did not confirm any enforcement actions. According to the report, a decision could come before the Commission’s August recess, but delays are possible.
Under the DSA, companies that violate the law may be fined up to 6% of their global turnover. Repeat violations could result in a ban from operating in the EU.
X, previously known as Twitter, has faced scrutiny over changes to its platform. In July 2023, the Commission issued preliminary findings that X violated the DSA by using deceptive design, particularly by linking the blue checkmark to a paid subscription, which regulators said could mislead users about an account’s credibility.
X has disagreed with the Commission’s assessment. The EU opened a formal investigation into the matter in December 2023.
Earlier this month, X added a disclaimer to its blue checkmark feature in response to concerns from EU regulators.
