EU Spares Elon Musk's X from DMA but May Use SpaceX, Neuralink Revenue for DSA Fines

Oct 17, 2024, 09:48 AM

The European Commission announced on October 16 that X, the social media platform owned by Elon Musk, will not be designated as a "Gatekeeper" under the Digital Markets Act (DMA). This decision exempts X from the stringent competition rules aimed at keeping digital markets open and fair. The Commission noted that X is not significant enough to warrant such regulation but will continue to monitor the digital market for any changes. However, the European Union has warned that it may significantly increase potential fines against X by including revenue from Elon Musk's other businesses, such as SpaceX, Neuralink, and Tesla, in its calculations. This consideration stems from concerns over X's compliance with content moderation rules under the Digital Services Act (DSA), particularly regarding content moderation violations. By factoring in revenue from Musk's broader business empire, the EU aims to enforce stricter penalties for any violations, emphasizing the seriousness of compliance issues related to X.