Latest news with #DSA
Arabian Post
2 days ago
- Business
- Arabian Post
EU Intensifies Oversight of Musk's xAI–X Deal
European Commission regulators have launched an in-depth inquiry into the corporate restructuring of X following its $33 billion acquisition by Elon Musk's AI venture, xAI in March. Officials have issued formal information requests probing whether the deal reshaped the obligations and liabilities under the Digital Services Act, which could trigger fines of up to 6 per cent of global turnover or even a suspension of operations within the EU. At stake is not merely compliance but scope. Brussels is examining if revenue from Musk's wider corporate empire—including xAI, SpaceX, Neuralink and The Boring Company—should be aggregated with X's earnings when calculating any DSA penalty. Such consolidation would dramatically increase the financial stakes, positioning the potential fine among the largest ever under the regulation. This intensified scrutiny builds upon a probe initiated in December 2023 over allegations that X failed to curb harmful content and employed deceptive design. The spotlight has honed in on features such as the blue check verification, which critics say misled users into attributing credibility purely on subscription status. X has contested these accusations, reflecting the gravity with which Brussels regards compliance under the DSA. ADVERTISEMENT Regulatory sources indicate that Brussels aims to reach a decision before its summer recess in August 2025—though there remains a possibility that deliberations will extend. If a penalty is levied, whether tied solely to X or inclusive of Musk's other holdings, the platform could face a multi‑billion‑dollar bill. Repeat offenders risk more severe sanctions, including operational bans within the bloc. The commission's current line of inquiry follows earlier requests for internal documentation on X's algorithmic decision‑making and moderation protocols issued in January 2025, aimed at uncovering systemic bias or political amplification. EU digital chief Henna Virkkunen has signalled that the commission's enforcement of the DSA will be uniform across all major platforms—regardless of headline-grabbing personalities or companies. For the xAI–X merger, Brussels appears particularly concerned with whether the March acquisition alters liability thresholds or the classification of X as a 'Very Large Online Platform'—a designation that comes with more rigorous reporting and compliance obligations. The structure of the deal could influence if DSA fines are calculated based solely on X or on the broader Musk group. European digital regulators are keen to demonstrate the potency of the DSA, which took effect in late 2022, aiming to set a precedent in holding tech giants accountable across interconnected corporate structures. X's contested manoeuvres with the blue checkmark and structural repositioning have become emblematic of the challenges regulators face enforcing meaningful accountability. Musk's companies have so far declined to respond to the commission's most recent information requests. Meanwhile, EU officials continue to gather internal documents, revenue data and structural filings to determine the extent of exposure under DSA provisions before any final ruling.
The Hindu
3 days ago
- Business
- The Hindu
EU probes Musk's xAI buyout of X: Report
Elon Musk's $33 billion xAI acquisition of X has drawn fresh scrutiny from the European Union, as regulators evaluate potential fines under the Digital Services Act, Bloomberg News reported on Thursday. The European Commission recently circulated fresh questions to X, probing the social media platform's corporate structure following its acquisition by xAI, the report said citing people familiar with the matter. Musk said in March the combination valued "xAI at $80 billion and X at $33 billion". Before its summer recess in August, the regulator could announce a fine on X for alleged infractions under the DSA, though delays are possible, according to the report. Representatives for the European Commission, 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.
Time of India
3 days ago
- Business
- Time of India
EU says it is probing corporate structure of Musk's X months 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 . by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo 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. Live Events 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. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories 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.
Indian Express
3 days ago
- Business
- Indian Express
EU says it is probing corporate structure of Musk's X months 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.
The Star
3 days ago
- Business
- The Star
EU probes Musk's xAI buyout of X, Bloomberg News reports
FILE PHOTO: xAI logo is seen in this illustration taken, February 16, 2025. REUTERS/Dado Ruvic/Illustration/File Photo (Reuters) -Elon Musk's $33 billion xAI acquisition of X has drawn fresh scrutiny from the European Union, as regulators evaluate potential fines under the Digital Services Act, Bloomberg News reported on Thursday. The European Commission recently circulated fresh questions to X, probing the social media platform's corporate structure following its acquisition by xAI, the report said citing people familiar with the matter. Musk said in March the combination valued "xAI at $80 billion and X at $33 billion". Before its summer recess in August, the regulator could announce a fine on X for alleged infractions under the DSA, though delays are possible, according to the report. Representatives for the European Commission, 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. (Reporting by Jaspreet Singh in Bengaluru; editing by Diane Craft)
