Elon Musk’s platform, formerly known as Twitter and now referred to as X, has encountered numerous controversies in recent months. From advertisers withdrawing due to their promotions appearing alongside harmful content to issues with AI-generated spam, X has consistently made headlines for all the wrong reasons. Earlier this year, Hyundai paused its ad spending on X following concerns about the context in which their ads were displayed, underscoring growing discontent among advertisers.

Recently, Bloomberg reported that X is facing a formal warning from the European Union regarding its inadequate measures to combat dangerous content. This warning, expected to be announced by Internal Market Commissioner Thierry Breton before the EU’s summer break, marks the third instance where EU regulators have taken significant action against major tech firms. Sources familiar with the matter suggest that if X fails to address the European Commission’s concerns promptly, it could face a substantial fine amounting to 6% of its revenue, signaling potential financial repercussions for Elon Musk’s platform.

The EU’s scrutiny of X intensified last December following an investigation into the platform’s content management practices in the aftermath of the Hamas attacks on Israel. This investigation is part of broader regulatory probes initiated against other tech giants such as Meta, AliExpress, and TikTok for similar issues. Despite ongoing proceedings, there is currently no set deadline for the next steps in the EU’s actions against X.

Meanwhile, a recent report by the Financial Times provided insights into internal dynamics at X. The report highlighted pressures on CEO Linda Yaccarino from Elon Musk to implement cost-cutting measures and boost revenue. In response, Yaccarino initiated a strategic overhaul within her executive team, which included the dismissal of Joe Benarroch, the head of business operations and communications. Benarroch’s departure was reportedly linked to mishandling the rollout of a new policy on adult content, which led to criticism for not adequately informing stakeholders before its public announcement.

For those unfamiliar with Joe Benarroch, he joined X in June 2023 following a tenure at Comcast’s NBCUniversal, where he reported directly to Yaccarino.