Musk's $33 billion acquisition of X has triggered a new round of scrutiny from the EU, potentially facing fines.

Gate News bot message, Elon Musk invests $33 billion in the acquisition of the social media platform X, a move that has triggered a new round of scrutiny from the EU, with regulators assessing the fines under the Digital Services Act.

According to informed sources, the European Commission has recently raised new inquiries to X, investigating the corporate structure of the social media company after the xAI acquisition. Informed sources indicated that this investigation reflects the European Commission's concerns that the transaction in March—valuing xAI at $80 billion—has effectively brought X under its control, which may impact the scale of any potential fines.

According to the Digital Services Act, fines are linked to X's global revenue, which means that the size and structure of the merged company may affect the potential amount of the fines.

According to informed sources, the regulatory agency based in Brussels may announce the first fine against X for alleged violations of EU online content rules before the summer recess in August. They added that the amount of the potential fine has not yet been determined and may face delays. X can also commit to addressing the EU's complaints to avoid being penalized.

European Commission spokesperson Thomas Regnier said on Thursday: "We are closely monitoring the changes in the corporate structure of X, just as we monitor changes in any other designated platform." He also added that these changes could affect the ongoing investigation. He confirmed that an information request had been sent to X.