European Union regulators are reportedly preparing to impose significant penalties on Elon Musk’s social media platform X for violations of the Digital Services Act, which aims to combat illicit content and disinformation, according to a report by the New York Times. Sources familiar with the situation indicate that the penalties may include a substantial fine, potentially exceeding $1 billion, along with demands for product changes. This marks the first enforcement action under the new law, which requires social media companies to enhance their content moderation practices. The investigation, which began in 2023, has progressed independently of ongoing tariff negotiations between the U.S. and the E.U., despite concerns about escalating tensions with the U.S. over trade and regulatory issues. X is also facing a broader investigation related to its handling of user-generated content, which has raised concerns about hate speech and disinformation.

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