PARIS – French authorities have started a criminal inquiry into X, Elon Musk’s social media company, raising the stakes in its ongoing disputes with European officials. The investigation, announced by the Paris prosecutor on July 11, focuses on claims that X’s algorithms were manipulated and user data was misused, leading to concerns about outside influence on France’s democracy.
This move poses a fresh challenge for Musk and X, adding to their regulatory issues across Europe and coming just as X’s CEO, Linda Yaccarino, resigned.
According to Reuters, Paris prosecutor Laure Beccuau is leading the investigation, which began after complaints from centrist politician Éric Bothorel and a senior cybersecurity official. Bothorel, posting on X, said he was worried about “extreme informational bias” on the platform.
He believes the algorithms are shaped to match Musk’s political interests. The other complaint says that recent changes to X’s algorithms have boosted racist and homophobic content, disrupting open discussion in France.
The authorities are looking into whether X broke local laws by tweaking its algorithms to allow foreign actors to meddle in French affairs and by collecting user data without consent.
The investigation is handled by the Paris prosecutor’s cybercrime team, which is also working on a separate case against Telegram’s founder, Pavel Durov. The current probe covers both the company and key individuals, which may include senior management.
French law treats “organised data system manipulation” as a form of hacking that can lead to up to 10 years in prison and fines of around $350,000. While the charges haven’t been formally broadened to include “foreign interference” as defined by a 2024 law, that could change as the inquiry continues.
What This Means for Musk and X
This case puts X and Musk at risk, particularly since the platform plans to branch out into banking, crypto, and other financial services. If found guilty, X could face heavy fines, new limits on its activities in France, and damage to its reputation in Europe. Advertisers and users may lose even more trust in the brand, especially given recent losses in both areas and ongoing internal problems.
Musk’s public support for right-wing parties in France, Germany, and the UK has fuelled accusations of bias and increased the focus on how X handles content. His open support for Germany’s AfD party and promotion of an interview with its leader, Alice Weidel, prompted the European Commission to widen its review of X under the Digital Services Act (DSA) earlier this year.
The French action now adds a criminal layer to the regulatory scrutiny, pointing to a tougher stance on tech companies in Europe.
This case is only one part of Musk’s larger dispute with regulators in Europe, especially in Brussels. The European Commission has been looking at X for possible breaches of the DSA, which sets strict rules for large online services to remove illegal content like misinformation. Musk has called the DSA “an assault on free expression,” worsening his relationship with regulators who see X’s changes as potentially harmful to democracy.
After Musk’s interview with Weidel, the EU raised new concerns over X’s role in spreading far-right content. Meanwhile, French officials have begun investigating Musk’s AI tool, Grok, after it produced anti-Semitic replies, including praise for Hitler during recent floods in Texas.
Musk said Grok was “too quick to follow user prompts” and needed better oversight, but critics say this is just one more sign that X’s content controls aren’t working.
With pressure increasing from both Paris and Brussels, Musk has to carefully manage X’s future. He wants to turn the platform into a financial hub, but ongoing legal risks in Europe could make this impossible by shaking user and regulator confidence. The criminal angle in the French investigation shows European governments are ready to use the courts to keep tech giants in check.
Changing Ties with Trump
Musk’s legal troubles in Europe come as his relationship with Donald Trump looks uncertain. The two once worked closely together, but Musk recently split from Trump over US budget issues and launched his political party, signalling a new path. This rift could make it harder for Musk to get US political backing when facing tough European rules.
Musk has publicly defended Telegram’s Durov, calling his arrest “an attack on free speech,” a view Trump’s team once shared. Now, with Musk and Trump drifting apart, he may have less support from Washington while fighting legal battles in France. The Paris case could widen the gap between US and European policy on online speech, making Musk’s role even more complicated.
Adding to X’s challenges, Linda Yaccarino resigned as CEO on July 9, just before French prosecutors launched their investigation. Yaccarino, who joined X in May 2023 after Musk took over Twitter, said in her farewell post that she defended free speech and helped shape the company’s vision as an “Everything App.” Her decision comes on the heels of xAI’s $113 billion all-stock purchase of X in March, leaving many unclear about her future role.
Her departure was overshadowed by the Grok controversy, which drew criticism from French officials. While Yaccarino didn’t mention Grok or the French probe as reasons for leaving, the timing suggests there may be deeper problems at X. Her exit leaves the platform without a key leader during a rocky period.
Legal Risks in France
If French investigators find proof that X’s algorithms were manipulated or that user data was mishandled, X could face severe punishment. Beyond the risk of 10 years’ jail and a $350,000 fine, the platform could face new restrictions in France, such as changes to its algorithms or limits on its operations. If charges of “foreign interference” are added under newer laws, penalties could get even tougher and may put Musk and other executives at personal risk.
This case could also set an example for other European countries, putting even more pressure on X. The EU’s DSA probe could hit X with fines up to 6 per cent of its worldwide turnover, posing a serious threat to its finances. For Musk, who sees X as key to his vision of free speech and financial technology, these legal fights could derail his plans.
The French inquiry reflects broader calls to regulate tech platforms as their influence grows. In Brazil and Germany, X has faced similar complaints about shaping political views, while in the US, other platforms like TikTok and Facebook have faced their own scrutiny.
France’s move to treat algorithm changes as a possible crime shows that European regulators are willing to go beyond fines to force compliance. As the investigation unfolds, the world will be watching to see whether France’s judicial push reshapes the future of X—and the broader tech industry—in Europe and beyond.
