Elon Musk's X Faces Scrutiny By European Watchdogs After $33 Billion Acquisition By xAI — Platform Could Face Fine, Ban In The EU

European regulators are examining structural changes at Elon Musk's social media platform X following its acquisition by xAI.

What Happened: On Thursday, the EU announced that it was closely monitoring changes in the corporate structure of X, formerly Twitter, following a $33 billion acquisition by Grok-parent xAI, reported Reuters.

"We are following closely changes in the corporate structure of X, as we would changes in any other designated platform," said a spokesperson for the European Commission.

Although the EU did not confirm whether a fine is imminent, earlier it was reported that regulators are weighing enforcement actions under the Digital Services Act (DSA).

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Why It's Important: Earlier this month, X added a disclaimer to its blue checkmark system, a move widely seen as an attempt to preempt further penalties after the EU's preliminary finding in July 2024 accused the platform of deceptive design.

Previously, a commission spokesperson said that their investigation related to the blue checkmark was ongoing.

If found in violation, X could face fines of up to 6% of global revenue or, in extreme cases, a ban from operating in the EU.

Since buying Twitter for $44 billion in 2022, Musk has introduced major changes, particularly around monetization. These include launching the Twitter Blue subscription, which offers features like blue checkmarks.

Musk also removed legacy blue checkmarks, requiring users to pay for verification. “Twitter's current lords & peasants system for who has or doesn't have a blue checkmark is bu**sh*t. Power to the people! Blue for $8/month,” he said in 2022.

Photo Courtesy: JRdes on Shuttertsock.com

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.