“After Breton resigned in September, he bequeathed his fining powers to competition and digital boss Margrethe Vestager. Decisions on the penalties and how they are calculated would ultimately lie with Vestager,” Bloomberg wrote. The European Commission would have the final say.
“The commission hasn’t yet decided whether to penalize X, and the size of any potential fine is still under discussion,” Bloomberg wrote, citing its anonymous sources. “Penalties may be avoided if X finds ways to satisfy the watchdog’s concerns.”
X says SpaceX revenue should be off-limits
Although X faces potential DSA fines, it will avoid penalties under the EU’s Digital Markets Act (DMA). The European Commission announced yesterday that X does not “qualify as a gatekeeper in relation to its online social networking service, given that the investigation revealed that X is not an important gateway for business users to reach end users.”
But documents related to the DMA probe of X raise the possibility of treating multiple Musk-led companies as a single entity called the “Musk Group” for compliance purposes. In a March 2024 letter to Musk and X Holdings Corp., “the Commission set out its preliminary views on the possible designation of Mr. Elon Musk and the companies that he controls (‘the Musk Group’) as a gatekeeper,” according to a document signed by Breton.
X has argued that it wouldn’t make sense to include Musk’s other companies in revenue calculations when issuing penalties. “X Holdings Corp. submits that the combined market value of the Musk Group does not accurately reflect X’s monetization potential in the Union or its financial capacity,” the document said. “In particular, it argues that X and SpaceX provide entirely different services to entirely different users, so that there is no gateway effect, and that the undertakings controlled by Mr. Elon Musk ‘do not form one financial front, as the DMA presumes.'”
We contacted X and SpaceX today and will update this article if they provide any comment.
