Finance
EU says it is probing corporate structure of Musk's X months after xAI deal
Published by Global Banking & Finance Review®
Posted on June 19, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 19, 2025
2 min readLast updated: January 23, 2026
The EU is probing changes in Musk's X corporate structure post xAI acquisition, assessing potential DSA violations that could lead to fines.
(Reuters) -The European Union said on Thursday it was seeking more information from Elon Musk's X about changes to its corporate structure, months after the social media platform was bought by xAI in a $33 billion deal.
"We are following closely changes in the corporate structure of X, as we would changes in any other designated platform," a spokesperson for the European Commission, the EU's executive arm, said.
However, the spokesperson did not confirm an earlier report from Bloomberg News that said regulators were evaluating potential fines on X under the Digital Services Act.
Before its summer recess in August, the regulator could announce a fine on X for alleged infractions under the DSA, though delays are possible, Bloomberg reported.
Representatives for xAI and X did not immediately respond to Reuters requests for comment.
Any firm found in breach of the DSA faces a fine worth up to 6% of its global turnover, and repeat offenders may be banned from operating in Europe altogether.
Earlier this month, X highlighted a disclaimer to its blue checkmark in an attempt to head off a possible hefty fine from EU antitrust regulators.
The Commission issued preliminary findings under the DSA in July last year that X violated rules on deceptive design, especially by turning the blue checkmark into a paid verification, assigning false credibility to users.
X had disagreed with the assessment.
The EU had announced a probe into X's alleged breaches of the DSA in December 2023.
(Reporting by Jaspreet Singh and Niket Nishant in Bengaluru; editing by Diane Craft and David Gregorio)
The EU is seeking more information about changes to Musk's X corporate structure, particularly after its acquisition by xAI.
Firms found in breach of the DSA could face fines of up to 6% of their global turnover, and repeat offenders may be banned from operating in Europe.
Earlier this month, X highlighted a disclaimer to its blue checkmark in an attempt to mitigate the risk of a hefty fine from EU antitrust regulators.
The EU announced its investigation into X's alleged breaches of the Digital Services Act in December 2023.
The Commission issued preliminary findings in July last year stating that X violated rules on deceptive design, particularly regarding the paid verification of the blue checkmark.
Explore more articles in the Finance category
