It seems that Apple, Meta, Google, and Microsoft aren’t the only ones facing scrutiny in the EU. The EU Commission has completed its probe into social media platform, X, and is expected to impose a fine worth millions of euros, according to a report from Germany’s Handelsblatt newspaper.
Fine incoming
Germany’s Handelsblatt newspaper cites three high-ranking officials claiming that the EU has completed its probe into X and that a fine is incoming to millions of euros. Nothing has been confirmed yet, but it wouldn’t be the first time tech companies have faced pressure from the EU to adhere to the region’s rules and regulations.
As we previously said, many tech companies have caught the attention of the EU. More recently, TikTok has been hit with privacy complaints in Austria. The company allegedly sent data about its European users back to China. EU law allows the transfer of data outside the EU. However, this is only if the destination country doesn’t undermine the protection of said data.
However, these tech companies have recently found themselves an ally in US President Donald Trump. Trump recently spoke at the World Economic Forum, criticizing the EU for targeting US tech companies such as Apple. It is unclear if Trump will step in regarding the upcoming fine on X.
Elon Musk currently owns X. Given Musk’s position as a key adviser to Trump, we wouldn’t be surprised if Trump were to somehow intercede on the company’s behalf, or at least make comments that would give the EU pause on its decision.
Breaching the rulebook
The EU has been investigating X since December 2023. The platform has faced criticism for allegedly failing to comply with the EU’s Digital Services Act (DSA). There are concerns over its lack of a comprehensive ad repository. This repository is supposed to provide transparency over the platform’s advertisers and their campaigns.
The EU had previously requested that X preserve internal documents about its algorithms. It had also requested access to X’s technical interfaces. The EU wants to better understand how X’s algorithms work and whether X has changed them to comply with the DSA.
If the EU enforces the fine, X must pay a penalty of up to 6% of its global revenue. This will have a huge impact on its operations in the EU. The company will also have to decide if the financial impact from the changes it will have to make outweighs the fine or the loss it will incur if it decides to pull out of the EU.
