European Union (EU) officials are likely to impose heavy fines on X, the social media platform owned by Elon Musk, for breaking an important law meant to stop illegal content and false information, according to a report by The New York Times. This action could increase tensions between the EU and the United States, especially since Musk is a close adviser to US President Donald Trump.

"The penalties, which are anticipated to be announced this summer, will likely include a substantial fine and mandated product modifications," the article stated. The Digital Services Act (DSA), a recently enacted EU law intended to hold social media corporations responsible for content regulation, will be the subject of these initial enforcement operations. Regulators are discussing how big the fine should be, keeping in mind the possible impact on already tense relations between Europe and the U.S., especially with current trade and tariff disputes and the war in Ukraine. A news report mentioned that the fine could be more than $1 billion, as EU officials want to send a strong message to other tech companies not to break the rules of the DSA.

Even though diplomatic tensions are rising, EU officials said their investigation into X is not connected to the recent tariff talks started by Trump. The investigation, which began in 2023, led to an early decision last year that said the social media platform X had broken the law. A resolution is still possible if X agrees to make changes that deal with the concerns raised by regulators, officials said. However, X is also facing a separate and wider investigation by the EU, which could lead to more penalties. According to the report, this second investigation is looking into whether X’s handling of user-generated content has created a space for illegal hate speech, false information and other content that could harm democratic values in the 27 EU countries.

A representative for the EU's executive branch, the European Commission, reaffirmed the bloc's dedication to fair enforcement. According to the news source, the spokesperson stated, "We have always enforced and will continue to enforce our laws fairly and without discrimination toward all companies operating in the EU, in full compliance with global rules."