EU Launches Probe into Musk’s X Structure Following xAI Deal

Speedy Summary

• The European Union (EU) is seeking details from Elon Musk’s X regarding changes in its corporate structure.
• The inquiry follows xAI’s $33 billion acquisition of X, the social media platform.
• An EU spokesperson stated that they are monitoring changes in the corporate structure of X as they would for any designated platform under the Digital Services Act (DSA).
• Bloomberg reported potential fines against X for infractions under DSA rules, though no confirmation was provided by the EU spokesperson.
• Firms violating DSA regulations may face fines up to 6% of global turnover or even bans from operating within Europe for repeat offenses.
• X previously received a warning from EU regulators over deceptive practices tied to its blue checkmark feature, which became a paid verification system and allegedly misled users about credibility.

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