EU investigating Musk’s X corporate structure after xAI deal

The European Union said on Thursday it was seeking more information from Elon Musk‘s X about changes to its corporate structure, months after the social media platform was bought by xAI in a $33 billion deal.

“We are following closely changes in the corporate structure of X, as we would changes in any other designated platform,” a spokesperson for the European Commission, the EU’s executive arm, said.

However, the spokesperson did not confirm an earlier report from Bloomberg News that said regulators were evaluating potential fines on X under the Digital Services Act.

Before its summer recess in August, the regulator could announce a fine on X for alleged infractions under the DSA, though delays are possible, Bloomberg reported.

Representatives for xAI and X did not immediately respond to Reuters requests for comment.

Any firm found in breach of the DSA faces a fine worth up to 6% of its global turnover, and repeat offenders may be banned from operating in Europe altogether.

Earlier this month, X highlighted a disclaimer to its blue checkmark in an attempt to head off a possible hefty fine from EU antitrust regulators.

The Commission issued preliminary findings under the DSA in July last year that X violated rules on deceptive design, especially by turning the blue checkmark into a paid verification, assigning false credibility to users.

X had disagreed with the assessment.

The EU had announced a probe into X’s alleged breaches of the DSA in December 2023.

Get the latest headlines from US news and global updates from Pakistan, UK, Bangladesh, and Russia get all the latest headlines in one place with including Vance Luther Boelteron Hindustan Times.

See Less