What Might a Major E.U. Fine Against X Mean for Elon Musk?

The potential for major penalties in the European Union could test the boundaries of online speech and inflame tensions between the U.S. and Europe.

Elon Musk’s close relationship with President Trump may well end up shielding him from the 32 continuing investigations, pending complaints or enforcement actions against his companies in the United States. But something else appears to be happening for Musk in Europe.

My colleague Adam Satariano got the scoop last night that X, Musk’s social media platform, is likely to face major penalties in Europe for violating a new law designed to combat illegal content and disinformation. The company is expected to face a significant fine and orders to change its service.

The investigation could complicate Musk’s agenda to make X a hub of freewheeling conversation, where anything goes. It has already inflamed simmering disagreement between the United States and Europe over online speech.

I asked Adam to explain how things got to this point, and how Europe is likely to handle its case against X, given Musk’s ties to Trump.

KC: You wrote that online speech has become a fractious issue between Europe and the United States. How did it get this way?

AS: It goes back decades but has intensified under the Trump administration. Europe has long adopted more limits on speech — think Germany’s restrictions on Nazism — while America prioritizes personal freedoms over all else, except perhaps being able to yell, “Fire!” in a crowded theater. As with many things, the internet, including social media, has made the differences in approach more pronounced, and turned them into a geopolitical pressure point.