Internet Musk faces billions in fines in dispute over false reports on X
US billionaire and Tesla boss Elon Musk is facing huge fines in the dispute over the spread of false news and hate messages on his social media platform X (formerly Twitter).
27.09.2024, 06:04
27.09.2024, 06:05
SDA
The first decisions in the proceedings against X under the EU Digital Services Act (DSA) will be made in Brussels in the coming weeks or months. Among other things, the law requires large online platforms to delete false information and "illegal content" such as glorification of terrorism or depictions of sexual violence more quickly. The laws of the member states are decisive - in Germany, for example, the dissemination of Nazi propaganda is prohibited.
EU Commission found many shortcomings
The Commission criticized a number of violations on Musk's platform: X deceives its users with the white-blue tick for user accounts that they are authentic and verified - however, every paying customer receives the tick. It is also often not transparent who is behind the advertising on X. The company also does not release enough data for research purposes. The Commission has not yet reached a final decision on its action against X. However, fines of up to six percent of annual global turnover could be imposed for each of the accusations if Musk does not give in to the pressure from Brussels.
The threat of high fines
The Commission has leeway here. According to the law, the basis for calculating the fines is the turnover of the "provider" of the affected online service that "exercises a decisive influence on the platform". This provider can be either a company or an individual, explained Commission spokesperson Thomas Regnier when asked by the AFP news agency. If it wants to increase the penalties, the EU Commission could therefore use the business figures of all of billionaire Musk's companies as a basis - including the aerospace company SpaceX and the electric car manufacturer Tesla, which reported a turnover of around 97 billion euros last year. According to calculations by the AFP news agency, the maximum fine could increase 30-fold, from just under 200 million euros for Platform X alone to almost six billion euros. This applies to each of the three official allegations made so far, as well as to two proceedings in which investigations are still in the early stages.
No case law on such a case to date
According to Brussels lawyer Romain Rard, penalties of this amount are "conceivable" under European law, but "much riskier because they are more likely to be challenged before the European Court of Justice in Luxembourg". So far, there is no case law that the Commission can use as a guide. "In the end, the judiciary will decide," Rard told the AFP news agency. Musk, for his part, has already announced that he intends to remain tough on the EU. "We are looking forward to a very public battle in court," he said in July, when the EU Commission announced its accusations.
Commission could block X
As a last resort, the EU Commission would even have the tools in its hands under the Digital Law to block Musk's platform. Brussels could appeal to a court at X's European headquarters in Ireland to obtain a temporary block on the platform while the EU proceedings are ongoing. However, unlike in Brazil, where X is currently unavailable, such a block is unlikely in Europe. Jan Penfrat from the network user association European Digital Rights (EDR) calls a block an "absolute emergency solution". He warns that the EU Commission must be careful with such steps, as a block would restrict access to information. Musk and his supporters could then accuse the EU of "censorship".
