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EU Seeks to Impose Turnover Fines on All Elon Musk Companies
Brussels has accused Elon Musk of violating arbitration rules and failing to remove illegal content, threatening to fine the company up to 6% of its global revenue under the EU Digital Services Act. You're following social network X. But why isn't the EU limiting itself to Musk's company?
Elon Musk could face EU fines for the turnover of almost all of his assets. According to media reports, Brussels is considering the possibility of introducing a 6% fine for violations of X (blocked in Russia) not only on social networks, but on all companies except Tesla. Musk has previously threatened European regulators with a "public fight in court."
Bloomberg explains that the proceedings under the EU Digital Services Act will involve an unprecedented and unusual format for applying turnover fines. Brussels is pursuing the social network There is a threat of imposition.
Now, according to the agency, the European authorities are considering a much more serious scenario, calculating fines from income not only from Infrastructure boring enterprise. Here's why: Since Musk is the sole owner It is known that since Tesla is a listed company, the blow is not taken into account. Eduard Bekeshchenko, partner at the law firm Art De Lex, analyzes the lawsuit.
If the idea is implemented, the maximum recovery of X and Musk could increase several times. The social network's own revenues are no longer published after its acquisition by the billionaire, but before that, Twitter earned between 3 and 4 billion dollars. According to Bloomberg sources, SpaceX's revenue this year could reach $15 billion. None of Musk's remaining personal assets are currently profitable, or their income cannot compare with these figures. Taking this into account, the total amount of compensation may no longer be calculated in hundreds of millions of dollars, but exceed 1 billion dollars. How will Musk react and should we expect some kind of withdrawal of his company from the European market? Dmitry Kirillov, an adviser to the law firm Lidings, says:
Musk himself has not commented on the new Bloomberg report, but he did respond earlier to the news about Brussels' plans to introduce turnover fines - it's "true." Whatever that means.