The European Commission pauses the investigation into DSA violations by X to maintain peace with the United States.
According to Financial Times, the European Commission is temporarily refraining from taking further action against X. Last year, the Commission already preliminary found X in breach of DSA regulations. X was reportedly insufficiently transparent about how ads work on the platform and did not provide enough data for external researchers. A follow-up investigation was underway to confirm these violations so that an appropriate sanction could be imposed.
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For now, these are not forthcoming, and Elon Musk has his former friend Donald Trump to thank for that. The American president is once again wielding his “reciprocal” import tariffs against the European Union. To keep the atmosphere at the negotiation table positive, the Commission wisely decides not to be too harsh on American companies for the time being.
Flexible Deadline
Apple and Meta, however, could not count on a delay. Both tech giants were hit with multimillion-dollar fines by the Commission in April, although Apple is not giving up easily. However, that ruling was under the DMA legislation. A delay is not an absolution for X: the Commission confirms to Financial Times that it “remains fully committed to the effective enforcement of digital legislation”.
The DSA legislation includes less clear legal procedures than the DMA. This gives the Commission more leeway to set a flexible deadline for further action against X. The Commission is also conducting negotiations on import tariffs. Trump’s most recent percentage is 30 percent on goods entering the United States from Europe, although that percentage changes depending on the president’s mood.
Trump might not retaliate against the European Union for sanctions against X. As could be predicted, the bromance between Trump and Musk was short-lived. During the elections, they stood shoulder to shoulder, but now they hurl insults at each other like teenagers through social media.
X has already stated that it does not agree with further measures. Besides the DSA, it also seems to not comply with GDPR legislation. Other Musk companies are also under fire. The Polish government is requesting an investigation into x.AI, after chatbot Grok was guilty of antisemitism.