The EU Plans to Launch a Structural Compliance Investigation on xAI’s Acquisition of X Platform

BlockBeats News, June 20th, according to the New York Post, the European Commission said on Thursday that it is requesting more information disclosure from Elon Musk's X platform regarding corporate structure changes. An EU spokesperson confirmed that they are closely monitoring X company's structural changes and assessing whether to impose the highest possible fine of up to 6% of global turnover on X for violating the Digital Services Act (DSA). The EU spokesperson emphasized: We are closely watching X platform's corporate structural changes just like we do with other designated platforms.

In March, xAI under Musk completed the acquisition of X through an all-stock transaction, and the post-merger entity is unified as XAI HOLDINGS. This deal valued xAI at $80 billion and X at $33 billion (i.e., $45 billion minus $12 billion debt). Last July, the EU preliminarily found X platform guilty of "deceptive design" violations, including changing the Blue V certification to a paid service that distorted user credibility. To avoid penalties, X platform added a Blue V disclaimer this month.