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CliQ INDIA > International > With Donald Trump’s return, EU faces dilemma over Elon Musk and digital services act | CliqExplainer
International

With Donald Trump’s return, EU faces dilemma over Elon Musk and digital services act | CliqExplainer

Donald Trump’s return to the White House places the European Union in a precarious position regarding its ongoing scrutiny of Elon Musk’s X platform, formerly Twitter.

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Donald Trump’s return to the White House places the European Union in a precarious position regarding its ongoing scrutiny of Elon Musk’s X platform, formerly Twitter. Elon Musk, a close ally of Donald Trump, leveraged his influence and resources to back the Republican’s campaign, using his social media platform to amplify pro-Donald Trump messages, including controversial and inflammatory content. Now, with Donald Trump poised to reshape US governance, Brussels must weigh its regulatory priorities against the risk of antagonizing a powerful ally of the new administration.

The European Union’s Digital Services Act (DSA), a landmark content regulation law, has placed Elon Musk’s X under intense scrutiny. In July, the European Commission accused the platform of misleading users with its blue checkmark system, lacking transparency in advertising, and obstructing researchers’ access to its data. Each violation could result in fines of up to six percent of Elon Musk’s global annual revenue, potentially amounting to billions. However, the political landscape has shifted, complicating enforcement efforts.

Donald Trump’s administration has signaled its opposition to EU regulatory overreach. J.D. Vance, Donald Trump’s vice president-elect, hinted on the campaign trail that NATO support could be jeopardized if Brussels continues its regulatory push against Elon Musk. Such remarks underscore the geopolitical stakes as the EU navigates its relationship with a more isolationist US administration that champions “America First” policies.

Elon Musk and his allies on the American right have framed the EU’s enforcement of the DSA as an ideological battle against censorship. Despite assurances from the European Commission that the US election results will not impact enforcement, experts suggest that Brussels may tread carefully to avoid provoking the volatile Donald Trump administration. Alexandre de Streel, an expert at the Center on Regulation in Europe, noted that the EU might deprioritize action against X to preserve transatlantic relations, particularly given the ongoing war in Ukraine and Europe’s reliance on US support.

The departure of the EU’s former digital chief, Thierry Breton, who clashed publicly with Elon Musk, offers an opportunity for a reset in relations. While the Commission continues to investigate X, analysts predict it may shift focus to other platforms like TikTok, seen as a less politically fraught target. Umberto Gambini of Forward Global observed that Europe must maintain its credibility in regulating Big Tech, potentially by threatening substantial fines. However, with fragile ties to Washington in mind, the EU is likely to approach the Elon Musk-Donald Trump axis with strategic caution in the months ahead.

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