The Commission has sent a request for information under the EU’s online rulebook, the Digital Services Act (DSA), aiming to clarify the corporate structure of X, after the platform was acquired by xAI in May.
“We are closely following changes in the corporate structure of X, as we would with any other platform designated under the DSA,” Commission spokesperson, Thomas Regnier, said on Friday.
X was acquired by Elon Musk in 2023, when it was still called Twitter. In March 2025, xAI – an artificial intelligence startup which is majority-owned by Musk – announced that it was acquiring X for €28 billion ($33 billion), raising questions about the corporate structure of X under the DSA.
By clarifying X’s corporate structure, the Commission will determine the scope of any future DSA sanction on the platform.
X, which has been under investigation for potential DSA violations since December 2023, could face penalties of up to 6% of its annual global turnover for breaching the bloc’s rules.
The EU’s online governance rules target platform providers, whether they are individuals or companies. If X is fined for a DSA breach, depending on the answers the EU receives regarding its corporate structure, the EU could end up basing the fine on revenue from Musk’s entire business empire – which also includes stakes in companies such as Tesla and SpaceX – or just xAI.
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