Elon Musk Faces Challenges in Dealing with the European Commission

On August 21 Beijing time, according to Reuters, Elon Musk is being investigated by the European Commission, and in this struggle with the European Commission, he seems to have a hard time finding a way out. It is reported that "Musk may eventually think that closing the platform is a reasonable choice".

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The 'X' that doesn't conform to the rules

The European Commission released a preliminary investigation result last month, stating that the X platform violates the Digital Services Act (DSA), a new legislation aimed at combating harmful online content. Brussels has raised objections to the blue user verification marks on the X platform, fearing that these marks will bring 'false information' to certain accounts.

In response, the X platform said it 'does not agree'. Meanwhile, another investigation into how Musk's website supervises false information and illegal content is still ongoing.

The firm and impartial 'opponent'

In the European Commission, Musk has encountered a firm opponent - European Commissioner Thierry Breton and Margrethe Vestager, who have new legal weapons to take measures against X.

For example, Breton has taken an unusual step by publicly reminding Musk that the X platform needs to comply with the DSA, which has caused a sensation in Brussels but also highlights the Frenchman's determination in this case. At the same time, the DSA also gives the X company some time to improve its system for the European Commission to conduct further evaluations before making a final decision.

According to a person familiar with the case, the European Commission does not expect a perfect platform without hate speech or false information forever. It hopes to see strong procedures to delete illegal posts, such as those promoting terrorism, and a design system aimed at limiting the social risks brought by rampant false information.

The 'rebellious' Musk

But the reality shows that Musk may have a hard time accepting this vision. Compared to the previous management of the company (that is, Twitter), his attitude towards controversial posts is more tolerant.

A report by the European Commission in May stated that since last October, the X platform has reduced the size of the content review team by 20% and only covers 7 of the 24 official languages of the European Union.

The X platform has not signed the European Code of Conduct on Disinformation, while TikTok, the owner of YouTube, Alphabet, and the owner of Facebook and Instagram, Meta, have signed the code.

A study commissioned by the supporters of the code shows that among the major platforms, false information is most easily found on the X platform.

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The 'European market' that may disappear

Musk seems unlikely to make many changes. His response to Breton's warning is a meme with vulgar language. Therefore, Musk may also face the threat of corresponding penalties. If he continues to insist on his own opinions, it will only lead to one result: withdrawing from Europe.

Technically speaking, withdrawal should be feasible. For example, Meta's Threads social media service initially did not provide services to Euro pean users.

But giving up the European market will mean giving up 67 million logged-in users, although whether the X platform can make more money from these users is still questionable.

It is known that the company's free cash flow was 'negative' last summer. Between facing huge fines and giving up his beliefs, Musk may simply think that the region is 'not worth' staying.

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European Industry Commissioner Thierry Breton in a letter to billionaire Elon Musk on August 12, demanding that Musk must comply with EU laws before interviewing US presidential candidate Donald Trump through the social media platform X.

Breton said in the letter: "The obligations of the Digital Services Act (DSA) apply without exception to the entire user group and the supervision of X platform content (including your own as a user with over 190 million followers), which is open to EU users and should be fulfilled according to the DSA's risk-oriented approach, which requires stricter investigations in the case of an increased foreseeable risk situation."

On July 12, the European Commission pointed out in a preliminary ruling that the X platform failed to comply with the requirements of the DSA, that is, to provide searchable and reliable information in the advertising library for easy access. The X platform is also accused of preventing researchers from accessing its public data. The company will have several months to respond to these accusations. If it is found to violate the DSA, it will face a fine of up to 6% of its global turnover. The European Commission said it will also continue to conduct a separate investigation into the spread of illegal content on the X platform and the measures taken by the platform to combat false information. The X platform said it does not agree with the European Commission's assessment of its compliance with the DSA.

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