Social network formerly known as Twitter, now branded as X, faces a looming challenge in the European Union. Elon Musk, the tech billionaire who leads the company, is weighing the option of pulling the service from the EU to sidestep new obligations aimed at curbing terrorism and disinformation. The decision could reshape how the platform operates across a market that represents a significant part of the company’s global audience.
Sources familiar with the matter tell Insider that the wealthiest individual on the planet is contemplating either removing access to the service or blocking it entirely across 27 EU member states. Neither Musk nor officials in Brussels have publicly confirmed or denied these considerations in statements to major U.S. outlets, leaving the situation shrouded in ambiguity.
The possible exit from the EU appears tied to the Digital Services Act, a landmark regulation that seeks to curb the spread of false information across large online platforms. Implemented last August, the DSA imposes clear duties on platforms to monitor and address disinformation. Unlike some competitors, X reportedly did not preemptively adjust its policies to comply, according to industry observers and regulatory briefings cited by Reuters.
Brussels has warned of heavy penalties for noncompliance, including fines that could reach up to a substantial share of global turnover and, in extreme cases, removal from the single market. A rigorous enforcement stance could further erode X’s revenue base, already pressured by a marked decline in advertising income that analysts say fell by more than half last year. These numbers come from an independent assessment reviewed by Reuters and discussed in the context of the EU’s regulatory expectations.
Tension with Brussels
The friction between Musk and European authorities has intensified as Brussels publicly criticizes the executive for multiple instances of noncompliance and for not providing timely notifications about steps taken to curb hoaxes and misleading content. Regulators have expressed concerns about the level of transparency, urging X to share more information with oversight bodies and researchers who analyze platform safety and content practices.
Recently, European officials opened a formal inquiry into X based on concerns that the platform has not done enough to address a surge of misinformation in the aftermath of the renewed conflict between Israel and Hamas. Authorities had previously warned that insufficient action could enable manipulation campaigns conducted from abroad on the platform, a point that has kept the regulatory dialogue tense and ongoing.
There is also context to the broader staffing and operational shifts at X. The platform undertook substantial layoffs, reportedly reducing its workforce in ways that affected the team responsible for content moderation. In addition, several international offices, including those in Europe, India, Australia, and Africa, were scaled back or closed, contributing to questions about the platform’s capacity to manage safety and compliance across diverse regions.
Observers note that the combination of regulatory pressure, revenue pressures, and changes in staffing has created a challenging environment for X as it navigates a regulatory landscape that remains highly vigilant about platform accountability and the quality of public discourse online. Analysts continue to monitor how the company adapts its policies, reporting practices, and moderation resources to meet EU standards while preserving access for users who have historically relied on the platform for news, conversation, and real-time updates.