Can Europe control Musk?

Hey there, it’s Jillian in Brussels. European regulators still believe they can control Elon Musk. But first...Today’s must-reads:• Beijing [View in browser]( [Bloomberg]( Hey there, it’s Jillian in Brussels. European regulators still believe they can control Elon Musk. But first... Today’s must-reads: • Beijing has begun [cooperating]( with US efforts to ensure American technology isn’t routed to China’s military • Apple retail employees [pushed back]( on unionization efforts at a location in St. Louis • Microsoft is [ready]( to fight for its Activision deal Can Elon be controlled? European politicians including Commissioner Thierry Breton, the EU’s digital chief, have repeatedly warned Elon Musk that he has to make sure [Twitter flies]( by Europe’s rules. The problem is a focus on the bloc’s content moderation policy, the [Digital Services Act](. Though now law, companies like Twitter don’t have to comply until next summer—at the earliest. That's a lifetime in Musk's world of [rapid iteration]( and [occasional backtracks](, and there’s a lot set to happen in the meantime. In January, Twitter will have to show whether it's following the EU’s [code on disinformation](. In February, it’ll report how many users it has, in order for the EU to determine whether it’s enough to be subject to the bloc’s [strictest content rules](—including providing annual reports about illegal and harmful content on the platform. Commission officials have dismissed concerns the company might not have the 45 million users in Europe required to be considered a “very large online platform.” Still, if Twitter escapes categorization as a VLOP, it could severely undercut the commission's threats. At some point during all this next year, the European Commission will also conduct a “[stress test](” to see if Twitter’s compliant with the DSA. Sure, it’s not a good look if the company’s non-compliant right out of the gate—making Twitter an even clearer target for regulators—but failure wouldn’t result in massive fines, either. Let's fast-forward a year. Twitter will have to submit risk assessments to the European Commission about how it’s handling harmful content. There’ll likely be a lengthy back and forth before the EU’s executive arm uses any of its toughest tactics: forced changes to algorithms, raids on offices, massive fines, or blocks in Europe entirely. All this will also depend on whether the commission [gets the staff and resources]( to really police the DSA, too. A major data breach could also lead to fines under the EU's General Data Protection Regulation. Then there's the risk of further fallout over the way Musk [fired employees]( after taking over. But critics have long slammed Ireland’s data protection watchdog for not holding tech companies to account; and so far, most of Twitter’s former employees are negotiating settlements rather than dragging Twitter to court. In the meantime, Musk is playing politics well in Europe. He's told regulators he’s taking their rules seriously, even if he has a skeleton staff left to do it. He also called Breton the day after he took over Twitter. And despite the headlines, Breton and Musk actually get along. Breton’s visit to Texas in the spring showed the two have lots of shared interests from space to semiconductors, and most importantly shared views of content moderation. Removing content that violates the law? Check. Transparency of algorithms? Check. No arbitrary bans? Check. We very well could see this relationship deteriorate, but that day is unlikely to come soon. Musk will do plenty with Twitter in the meantime. —[Jillian Deutsch](mailto:jdeutsch24@bloomberg.net) The big story Apple’s Tim Cook and AMD’s Lisa Su will join President Joe Biden on Tuesday at an Arizona event for TSMC, [where the chipmaker will announce](bbg://news/stories/RMGL1HDWLU6B) plans to bolster its investment in the state to $40 billion and construct a second production facility. Get fully charged Intel is hitting all the targets it has set on a path to regain leadership in semiconductor manufacturing, [according to the executive]( responsible for the effort The UK is finalizing plans for [regulation of the crypto sector](, moving ahead with plans to make Britain a hub for the industry Apple was also sued by two women [who say its AirTag devices]( make it easy for stalkers to track and terrorize victims Follow Us More from Bloomberg Get Bloomberg Tech weeklies in your inbox: - [Power On]( for Apple scoops, consumer tech news and more, every Sunday - [Game On]( for reporting on the video game business, delivered on Friday - [Cyber Bulletin]( for exclusive coverage on the shadow world of hackers and cyber-espionage, sent every Wednesday Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. You received this message because you are subscribed to Bloomberg's Tech Daily newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](