Trump's White House Return Boosts Musk in Tech Standoff with EU Regulators

AFP | Brussels, Belgium

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Donald Trump's potential return to the White House has placed his ally Elon Musk in a stronger position against European Union (EU) tech regulators, who may now hesitate before imposing fines on Musk's X platform over disinformation concerns. Musk, the world’s richest man and CEO of Tesla and SpaceX, has been a vocal supporter of Trump's presidential campaign, backing him financially and using his platform to spread pro-Trump, sometimes controversial, messages to over 200 million followers.

The partnership appears to have paid off, with Trump securing a win and tapping Musk for a key role in his potential administration. This has placed the EU in an uncomfortable position as it balances its strategic need for US support in countering Russian aggression with its regulatory ambitions for Musk’s X platform.

Trump's future vice-presidential candidate, J.D. Vance, suggested that the US might reconsider its NATO commitments if the EU continues efforts to regulate Musk's X platform under the Digital Services Act (DSA), warning that American power comes with expectations for free speech. For Musk, the opposition to the DSA has become more than a business matter; it has evolved into a broader ideological battle, with many on the American right framing it as a fight against censorship.

Despite the European Commission's assertion that the US election won’t influence its enforcement actions, many experts believe that the EU may reconsider its stance. Musk’s platform, formerly Twitter, faces accusations of misleading users through its blue checkmarks, lacking transparency in advertising, and failing to grant researchers access to its data. These charges are part of an ongoing DSA investigation into the spread of illegal content and misinformation.

Each violation could result in hefty fines, potentially reaching billions of dollars, based on Musk’s companies' global revenue. However, the probe was put on hold after Thierry Breton, the Commission’s digital chief, resigned in September, having been denied a second term. Now, with Trump back in power, Brussels may face a diplomatic dilemma. The fear is that pushing forward with fines could provoke Trump, leading to a trade conflict or a reduction in US support for Ukraine.

Experts believe that if Trump reclaims the presidency, EU regulators may avoid antagonizing him over tech regulations. Alexandre de Streel, a researcher at the Center on Regulation in Europe, commented that enforcing the DSA against Musk could complicate transatlantic relations at a time when Europe needs US support. He added that Musk and his supporters, including right-wing European leaders, are unlikely to back down from the ideological battle against the DSA.

The European Commission now faces a delicate balancing act. As EU leaders, including Hungarian Prime Minister Viktor Orban and Italian Prime Minister Giorgia Meloni, express support for Musk’s stance, Brussels may shift its focus to Chinese tech platforms like TikTok. Umberto Gambini, a European affairs consultant, predicted that while the investigation into X will continue, the departure of Breton could offer an opportunity to reset EU relations with Musk.

With Europe’s security concerns intensifying, Gambini believes the EU will be cautious in its approach, especially in the early months of Trump's potential second term. However, he also stressed that Europe must remain firm in its pursuit of regulating Big Tech to maintain credibility.