Brussels has delayed its highly anticipated enforcement decision under the Digital Services Act (DSA) against X (formerly Twitter), opting to wait until ongoing EU-US trade talks reach a resolution. The move postpones a potential fine of up to 6 percent of X’s global turnover — an estimated $150–180 million — and underscores the sensitivity surrounding both digital regulation and wider economic negotiations between Brussels and Washington.
According to three officials familiar with the process, the European Commission had been preparing to issue a formal infringement ruling against X before its summer recess. However, the decision was quietly shelved after concerns surfaced that an immediate penalty could disrupt broader talks with the US over tariffs, critical-minerals agreements, and the future shape of digital regulation.
The DSA probe into X — opened in December 2023 — centres on allegations of “dark pattern” interface designs, opaque advertising practices, and the company’s failure to grant meaningful data access to independent researchers. In July 2024, Brussels sent X a letter outlining preliminary findings, stating the platform was “likely in breach” on multiple counts, including deceptive design and insufficient ad transparency.
Commission officials continue to insist that enforcement remains “independent” of diplomatic pressures. “Enforcement timelines are guided by evidence, not foreign policy,” a spokesperson said in a press call on 17 July. But inside the European Parliament, frustration is growing. An unnamed MEP on the Parliament’s LIBE committee remarked, “Kicking the can undermines the credibility of the DSA — especially after we fined Apple and Meta in April.”
The legal stakes are significant. The DSA, which came into force for very large online platforms in February 2024, empowers Brussels to impose fines of up to 6 percent of a company’s prior-year global revenue, or even pursue a market ban in severe cases. For X, with estimated 2024 revenues of $2.9 billion, the penalty could reach nearly $174 million.
The delay comes amid delicate negotiations over an EU-US trade package covering steel and aluminium tariffs, critical-minerals access, and digital rules. US officials — including the White House and FCC — have sharply criticised recent EU enforcement actions, describing fines against tech giants as “economic extortion.” Former President Trump has threatened 30 percent tariffs on EU goods if Brussels presses ahead with stricter digital regulations.
Recent months have seen the Commission take a tougher stance against major US tech companies. In April, Apple and Meta were fined €500 million and €200 million respectively under the Digital Markets Act, sparking an immediate backlash from Washington. Proceedings are also ongoing against TikTok and Meta for alleged breaches of digital rules — with daily fines threatened in some cases.
The market has reacted cautiously. Pre-market trading in X-linked US “mirror” shares rose 1.8 percent on relief that a hefty EU fine was not imminent, while the STOXX Europe Big Tech index held steady. However, digital-rights groups, including EDRi and BEUC, have urged the Commission not to “trade away citizens’ rights” in pursuit of a broader deal.
As negotiations continue, pressure is mounting on Brussels to prove the DSA’s enforcement remains robust and independent. The Commission could still proceed with a decision against X within weeks, depending on how trade talks progress. The outcome will likely set the tone for future enforcement against other major platforms — and test Europe’s resolve in regulating Big Tech.
