Donald Trump's return to the White House could give Elon Musk, a vocal ally and supporter, a strategic edge in ongoing disputes with European Union (EU) regulators. Musk, the billionaire behind Tesla, SpaceX, and the social media platform X (formerly Twitter), has long faced scrutiny over his business practices and content policies. However, with Trump's presidency promising a shift in transatlantic dynamics, the EU may find itself treading cautiously.
Musk’s backing of Trump extended beyond financial support. He leveraged his influential social media platform to amplify pro-Trump messages to his 200 million followers, a move criticized for spreading disinformation. This gamble has seemingly paid off, with Musk reportedly poised to play a pivotal role in reshaping the US government under Trump’s leadership.
The implications of Trump’s presidency are reverberating in Brussels, where EU leaders must balance enforcing tech regulations against Musk’s X platform while maintaining strong ties with the US—a critical ally in countering Russia's aggression near EU borders.
The EU’s Dilemma
The EU has been actively investigating X under its Digital Services Act (DSA), a landmark law aimed at regulating illegal content and disinformation on digital platforms. Allegations against X include misleading users about its blue verification checkmarks, lack of advertising transparency, and insufficient researcher access to platform data. Each violation could result in fines of up to 6% of Musk’s global annual revenue—potentially billions of dollars.
Yet, Trump’s return complicates matters. His administration could pressure the EU to ease its stance on Musk, leveraging transatlantic relations to discourage penalties. Trump’s Vice President J.D. Vance even suggested during the campaign that the US might reconsider NATO support if the EU continues pursuing stringent actions against Musk’s companies.
“American power comes with certain strings attached. One of those is respecting free speech, especially in our European allies,” Vance warned.
A Political Standoff or Regulatory Commitment?
While the European Commission has reiterated its commitment to enforcing the DSA, some experts believe political realities could influence its actions.
“Enforcing EU tech rules against X may become as much about politics as regulatory compliance,” said Alexandre de Streel, a regulatory expert at CERRE. “I’d be surprised if the Commission chooses to provoke Trump over this.”
Adding to the complexity, Musk’s resistance to the DSA aligns with far-right ideologies across Europe, further polarizing the debate. The EU must also consider Trump’s influence on European allies, such as Hungary’s Viktor Orban and Italy’s Giorgia Meloni, who may echo his support for Musk.
A Fragile Transatlantic Relationship
With Ursula von der Leyen emphasizing the importance of a strong EU-US partnership following Trump’s re-election, experts suggest the Commission may focus its regulatory efforts elsewhere.
“If Europe wants to remain credible in regulating Big Tech, it must maintain its stance on imposing billion-dollar fines,” said Umberto Gambini of Forward Global. “However, given the fragile transatlantic ties, it’s more likely to shift its focus to Chinese platforms like TikTok.”
The departure of Thierry Breton, the EU’s former digital chief known for clashing with Musk, could pave the way for a more conciliatory approach. His successor, Henna Virkkunen, may look to reset the relationship while keeping the EU’s regulatory authority intact.
What Lies Ahead?
While investigations into Musk’s X platform are expected to continue, the geopolitical landscape has undoubtedly shifted. For now, the EU may prioritize maintaining a cooperative relationship with Trump’s administration, balancing its commitment to regulating Big Tech with the broader goal of safeguarding transatlantic unity.
As Europe navigates these challenges, the enforcement of the DSA remains a test of its regulatory resolve and its ability to manage evolving political dynamics on the global stage.
