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Elon Musk Faces EU Scrutiny Over Digital Services Act Compliance

Elon Musk’s ongoing feud with the European Union (EU) over compliance with the Digital Services Act (DSA) has taken a new turn. In a recent post on X, Musk referenced a line from the film Tropic Thunder, telling the EU commissioner in charge of overseeing compliance to “take a big step back and literally f**k your own face.” The interaction between Musk and EU regulators has sparked a flurry of memes, highlighting the tensions between the two parties.

The EU’s bid to get Musk to follow its rules is not without reason. The DSA gives the Commission the power to issue penalties of up to 6% of global annual turnover for non-compliance. The EU has already reported preliminary findings on X, citing illegal blue check systems and transparency issues. Another investigation is ongoing, focusing on how X responds to illegal content and disinformation related to the Israel-Hamas war. The Commission has also warned that disinformation spread on X during civic unrest in the U.K. may be factored into its enforcement of the DSA.

Despite the potential financial consequences, Musk may not be deterred. He has already alienated advertisers, potentially cratering X’s revenue, and may feel that the prospect of EU fines is not very intimidating. However, the EU’s open letter to Musk, posted on X, may not help the Commission’s efforts to regulate him. The letter reads like a first draft and risks being misinterpreted as an attempt to censor speech on the platform.

The EU missive reminds Musk of his legal obligations under the DSA, particularly regarding illegal content and disinformation. The letter explicitly mentions Musk’s personal reach on X as a user with over 190 million followers. It warns him to stop amplifying divisive narratives around civic unrest in the U.K. or face consequences under the DSA. The EU is closely monitoring the dissemination of content that incites violence, hate, and racism, especially during major political and societal events.

Musk’s immediate response has been to accuse the EU of overreach and attempting to censor views of people outside the EU. However, content on X is visible to EU users and subject to the DSA. The EU’s letter also reminds Musk that it can use “interim measures” to crack down on non-compliance, such as demanding the removal of infringing content or temporarily blocking access to the platform.

For Musk, who considers himself a free speech absolutist and aims to own the global town square with X, the threat of being shut out of a market of over 450 million people may be more concerning than financial fines. The EU’s warning serves as a reminder that compliance with the DSA is essential for X’s future in the EU market.

In conclusion, the ongoing battle between Elon Musk and the EU highlights the challenges of regulating a platform like X. The EU is determined to ensure compliance with the DSA, while Musk continues to push the boundaries of free speech. The outcome of this clash will have significant implications for both parties and may set a precedent for the regulation of digital platforms in the future.

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