The post EU sets sight on Musk’s empire over X acquisition by xAI appeared on BitcoinEthereumNews.com.

Elon Musk could be facing billions in fines from EU regulators following the acquisition of X by his AI startup, xAI. Musk’s companies merged following a $33B acquisition of the social media platform, X, by the billionaire’s AI startup, xAI. The move has drawn new regulatory scrutiny from the European Union, and it could have potential consequences that change the relationship between large tech companies and EU law. xAI buys out X The European Commission has reportedly sent a fresh wave of inquiries to X concerning the implications of the March buyout. The deal raised xAI’s value to $80B and effectively placed X under the AI startup’s umbrella. The move raised concern in Brussels that the restructuring could affect the scale of penalties the company may face under the Digital Services Act (DSA). Under the DSA, the EU holds the power to fine digital firms for up to 6% of their annual global turnover if they fail to address illegal content, disinformation, or comply with transparency requirements. According to insiders cited in publications, the European Commission is currently evaluating whether to include revenue from Musk’s other ventures, such as SpaceX, Neuralink, and The Boring Company, when calculating a potential fine against X. By attaching the penalties to the company’s total global revenue, the regulation raises the stakes for large corporations like Musk’s X. “We are following closely changes in the corporate structure of X, as we would changes in any other designated platform,” The Commission spokesperson Thomas Regnier said on Thursday. He confirmed that the Commission sent a request for information to X, emphasizing that such structural changes could influence the ongoing investigation. EU regulators may pass fine decision by summer Regulators have yet to issue their first major penalty under the DSA, and insiders have revealed that a decision…

---

Filed under: News - @ June 19, 2025 11:23 pm