• European Commissioner Thierry Breton on Monday warned X owner Elon Musk that the company may face penalties if it doesn’t address the spread of illegal content.
• Breton referred to riots that have taken place in the U.K., triggered by disinformation related to a fatal stabbing attack, as well as a conversation Musk is due to hold with Donald Trump.
• Breton warned Musk that the EU was prepared to "make full use of our toolbox" under the Digital Services Act, including interim measures, to protect EU citizens from "serious harm."

The European Commission on Monday warned X Corp. owner Elon Musk and CEO Linda Yaccarino that the company may face penalties and restrictions in Europe if it doesn't address the spread of illegal content, including incitements to violence and hate speech, on its social media platform.

"I am writing to you in the context of recent events in the United Kingdom and in relation to the planned broadcast on your platform X of a live conversation between a US presidential candidate and yourself, which will also be accessible to users in the EU," Thierry Breton, European commissioner for the internal market, wrote in a letter that was posted Monday on X.

"We are monitoring the potential risks in the EU associated with the dissemination of content that may incite violence, hate and racism in conjunction with major political - or societal - events around the world, including debates and interviews in the context of elections," wrote Breton.

"I therefore urge you to promptly ensure the effectiveness of your systems and to report measures taken to my team," he added.

Following receipt of the letter, Yaccarino called it "an unprecedented attempt to stretch a law intended to apply in Europe to political activities in the US."

"It also patronizes European citizens, suggesting they are incapable of listening to a conversation and drawing their own conclusions," Yaccarino wrote on X.

Musk, who is also CEO of Tesla, is set to host Donald Trump on Monday evening on Spaces, the streaming platform of X.

Billed as an unscripted conversation by Musk, the Spaces session will be one of the few campaign events Trump does this week. The Republican former president is still trying to find his footing in a newly competitive race against Democratic Vice President Kamala Harris.

The commissioner reminded Musk of due diligence obligations set out in the EU's Digital Services Act (DSA) — legislation requiring social networks and streaming media platforms to prevent the spread of hate speech and other harmful content on their platforms — amid an investigation of X into potential breaches of the law.

Breton warned Musk that the EU was prepared to "make full use of our toolbox" to protect EU citizens from "serious harm."

Given X Corp.'s reported 300 million users worldwide (of which one-third are based in the EU), X is "designated as a Very Large Online Platform" with a legal obligation to follow European laws and specifically the Digital Services Act, wrote Breton.

Riots that have taken place in the U.K. in recent weeks were sparked by disinformation that spread on X and other social media platforms, falsely identifying the perpetrator of attacks on children attending a dance class in an English town as an asylum-seeker.

Since then, Musk has made a series of incendiary comments about the situation in the U.K. on X. At one point, he suggested the violence taking place on British streets could end up in a civil war, writing, "Civil war is inevitable."

Musk's comments have been denounced by British officials. A spokesperson for U.K. Prime Minister Keir Starmer said last week there is "no justification" for such comments.

Musk also shared an image of a fake headline that was made to look like it had come from "The Telegraph" newspaper's website, falsely claiming that the U.K. was building "detainment camps" on the Falkland Islands for rioters.

He has since deleted the image, which had also been posted by the co-leader of the far-right Britain First party, Ashlea Simon.

U.K. officials had already been critical of Musk even before disinformation over the stabbings occurred. In an interview published by the Times newspaper last week, the U.K.'s technology minister, Peter Kyle, said that Musk is "accountable to no one" and that dealing with platforms like his can be like negotiating with foreign governments "simply because of the scale and scope that they have."

The commission, which is the European Union's executive arm, started an investigation last year to assess whether X is in breach of the DSA. That investigation is ongoing.

Breton said that the EU "cannot exclude potential spillovers in the EU" from illegal content being distributed on X, even when it's in the context of another jurisdiction's affairs.

The EU cites "changes to recommender systems, increased monitoring of specific keywords or hashtags, or orders to terminate or remedy alleged infringements" as examples of interim measures it can enforce under the DSA.

The commission also has the power to levy fines of as much as 6% of a company's global annual revenue if they break the DSA.

This commission has previously accused X of breaking the rules regarding dark patterns, which are deceptive tactics used by companies to push people to use or pay for certain products and services, advertising transparency and data access for researchers.