Elon Musk’s X Dodges EU Regulatory Crackdown: Report

Elon Musk’s social media platform X is likely to escape a regulatory crackdown by the European Union (EU) regulators. A recent report suggests that the platform might dodge facing stringent rules under the EU’s Digital Markets Act (DMA). Notably, this decision comes amid earlier concerns over potential legal challenges that could have affected X’s operations in the region.

Elon Musk’s X Set To Avoid EU Crackdown

A recent Bloomberg report indicates that the EU regulators have decided that Elon Musk’s X does not meet the necessary criteria to fall under the Digital Markets Act. The report, citing people with knowledge of the matter, suggests that the EU is nearing the end of its probe considering the negligible market impact of the social media platform on the region. Having said that, the European Commission decided to exempt the social media platform from its stringent rules.

The DMA targets firms with robust market influence and is designed to curb the power of the big techs by setting specific revenue and user thresholds. For instance, the firms must have annual sales of at least €7.5 billion or a market cap over €75 billion. Besides, the monthly active users should exceed 45 million and have 10,000 business users in the EU.

Meanwhile, Musk’s social media platform reportedly falls short of these benchmarks, sparing it from the regulatory restrictions aimed at tech giants like Google, Apple, Amazon, and Meta. However, despite the platform escapes the DMA’s immediate crackdown, it remains under scrutiny from EU regulators for alleged failures to control harmful content on its platform.

Since Musk’s acquisition in 2022, the platform has faced criticism for promoting misleading information. The EU’s Digital Services Act (DSA) continues to pressure X to comply with content moderation rules, with potential fines of up to 6% of revenue for non-compliance.

Tensions Between Elon Musk And EU Mounts

Despite reportedly dodging the immediate crackdown, X’s legal battles in Europe are far from over. The platform has drawn ire from EU officials, with ongoing disputes over content moderation and digital misinformation. EU regulators recently accused X of deceiving users into engaging with harmful content, escalating tensions between Musk and European authorities.

The tech mogul has frequently clashed with EU regulators, particularly after being warned by EU internal market chief Thierry Breton to adhere to DSA requirements. Musk has publicly criticized European policies, labeling Australian misinformation laws as “fascist” and often using the social platform to voice his opinions against what he describes as overly restrictive digital regulations.

Meanwhile, in recent months, Italian MEP Sandro Gozi threatened to shut down X in Europe if Musk fails to comply with EU rules. However, this stance received backlash, with Italian Deputy Prime Minister Matteo Salvini condemning Gozi’s statements.

This regulatory landscape highlights the ongoing power struggle between the social media platform and European officials as the platform navigates a complex web of compliance challenges.

On the other hand, recently Elon Musk’s X faced Brazil ban after the country’s top court suspended the platform. This latest development marks another front in the global battle between X and governments over content moderation and digital regulation.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
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