The European Union (EU) said on Thursday it was seeking more information from tech mogul Elon Musk’s X about changes to its corporate structure, months after the social media platform was bought by xAI in a USD 33 billion deal.
“We are following closely changes in the corporate structure of X, as we would change in any other designated platform,” a spokesperson for the European Commission, the EU’s executive arm, was quoted as saying by news agency Reuters.
However, the spokesperson did not confirm an earlier report from Bloomberg News that said regulators were evaluating potential fines on X (formerly Twitter) 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.
Any firm found in breach of the DSA faces a fine worth up to 6 per cent 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.
Earlier, Musk said the move to sell a USD 33 billion stake in X would “unlock immense potential by blending xAI’s advanced AI capabilities and expertise with X’s massive reach.” He added that the deal values xAI at USD 80 billion and X at USD 33 billion.
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