The European Union is reportedly preparing to impose a fine of over $1 billion on Elon Musk’s social media platform X, formerly known as Twitter, according to a report by The New York Times. The potential penalty stems from the platform's failure to adequately address illicit content and disinformation, as required under EU regulations.

Citing four individuals familiar with the matter, the report suggests that the fine could be issued later this summer. In addition to the financial penalty, X may also face demands to implement product changes aimed at better compliance with content regulations. These changes could target how the platform detects, manages, and moderates disinformation and illegal content.

Despite the looming fine, there is still room for negotiation. Sources indicated that regulators and X may reach an agreement under which the company would commit to altering its policies and practices. Such a deal could allow the platform to avoid the substantial fine by demonstrating a willingness to align with EU standards.

This development follows a public statement by Elon Musk last year in which he claimed to have rejected what he described as a "secret deal" offered by EU officials. According to Musk, the alleged deal aimed to quietly enforce censorship on the platform in exchange for avoiding financial penalties.

The case marks one of the most high-profile enforcement actions under the European Union’s tightening digital regulations. It highlights the growing tension between social media platforms and international regulatory bodies over the handling of harmful content and the responsibilities of digital platforms to uphold transparency and accountability.