The European Commission has paused one of its probes into Elon Musk’s social media platform X, formerly Twitter, as it works to reach a trade deal with the United States. The EU had planned to wrap up the investigation before its summer break, but officials now say that the final decision will come only after trade talks with Washington are complete.
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The case is one of several under the Digital Services Act (DSA), which sets rules for big online platforms. These rules aim to make platforms more transparent and responsible for harmful content. Last year, the EU said X used unfair design and did not share enough information about how it works, which could lead to a fine of up to 6% of its global revenue.
Trump’s Tariff Threat Slows EU Action
The delay comes as trade tensions between the U.S. and EU increase. Recently, President Donald Trump warned of 30% tariffs on EU goods starting August 1. He also strongly criticized EU fines on American tech firms, calling them “taxation” and “overseas extortion.”
With trade talks still ongoing, Brussels officials said they are being careful not to upset Trump or increase tensions with the U.S.
EU Says Digital Rules Will Be Enforced
Despite the pressure from the U.S., EU Commission President Ursula von der Leyen has made it clear that the EU will not change its digital rulebook. In April, the EU fined Apple and Meta a combined €700 million under separate antitrust laws.
Unlike those cases, which fall under the Digital Markets Act and have set deadlines, the probe into X is under the Digital Services Act (DSA), which does not have a fixed timeline. This gives the EU more time to delay a final decision while trade talks with the U.S. continue.
Meanwhile, Green Party lawmaker Anna Cavazzini has urged the Commission to act soon, calling the delay “worrying.” She also said the EU must not agree to any rule changes as part of its trade talks with the U.S.
In response, X said that it doesn’t agree with the EU’s claim that the company has failed to follow the Digital Services Act properly.
How to Invest in X
Traders can’t take a stake in X, as the social media platform went private following Musk’s purchase. Instead, investors might consider a stake in Tesla (TSLA) to bet on Musk’s possible success. Tesla is the only one of his companies that is publicly traded.
Analysts maintain a Hold consensus rating on Tesla stock based on 13 Buys, 13 Holds, and eight Sell ratings received during the past three months. Also, the average Tesla price target of $298.97 implies 7.06% downside potential from current levels.
