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The European Commission has put on hold one of its key investigations into Elon Musk’s social media platform, X, for allegedly breaching the EU’s digital transparency rules as it seeks to secure a trade deal, the Financial Times reported, citing sources familiar with the matter.
The commission was expected to finalize its probe before its summer recess but will now miss this deadline, the report said. The EU has several investigations against the social media platform for issues like deceptive design and insufficient data transparency.
Violations of the Digital Services Act can result in penalties of up to 6% of a company’s global revenue, though actual fines are expected to be below that.
The Trump administration had earlier pointed out that the EU is unfairly targeting American companies and violating the freedom of speech ideals upheld by the Maga movement.
The commission said the “proceedings against X under the DSA are ongoing”, adding that the enforcement of “our legislation is independent of the current ongoing negotiations”. It added that it “remains fully committed to the effective enforcement of digital legislation, including the Digital Services Act and the Digital Markets Act”.
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