European Union, EU, regulators are preparing to impose huge penalties against Elon Musk’s social media platform, X.
According to the New York Times, the EU feels X has broken a landmark law to combat illicit content and disinformation.
This move could increase tensions with the United States, as it would be targeting one of President Trump’s closest advisers.
According to sources, the penalties will include a fine and demands for product changes.
The fine could surpass $1billion, one person said, as regulators seek to make an example of X to deter other companies from violating the Digital Services Act.
These are likely to be confirmed this summer and will be the first issued under a new EU law, which is intended to force social media companies to police their services.
EU officials have insisted that their investigation into X was independent of tariff negotiations, after Trump announced major new levies this week.
The investigation began in 2023 and regulators last year issued a preliminary ruling that X had violated the law.
The EU and X could still reach a settlement, if Musk's company agrees to changes that satisfy regulators’ concerns, the officials said.