From X to SpaceX: EU Regulators Could Fine Musk Companies For Free Speech Push

The EU and Brazil are sharpening their regulatory knives, and who better to test their shiny new powers on than Elon Musk, the guy who seems to have made annoying pro-censorship bureaucrats his full-time hobby? Musk’s social media platform, X has become the latest target for both the European Union and Brazil — but they’re not just going after X anymore. The powers-that-be have decided that since X isn’t worth much these days, maybe they should slap fines on Musk’s other companies—SpaceX, Neuralink, xAI, and even the Boring Company—just because they can.

It’s the ultimate power move by regulators who seem to be more interested in flexing their muscles than addressing real issues. Why settle for a measly 6% fine on a struggling social media platform when you can drag in rockets, to pad the bill?

The EU’s Latest Power Trip: Digital Services Act as a Blank Check

Enter the Digital Services Act (DSA), the EU’s newest favorite tool for cracking down on “disinformation” and “hate speech” on major digital platforms. It’s got all the right buzzwords—”transparency,” “safety,” and “accountability”—but underneath the noble-sounding veneer, it’s starting to look more like a blank check for the EU to assert control over Big Tech. The law allows for fines of up to 6% of annual revenue for platforms that don’t comply. But when it comes to X, with its plummeting value—now at a measly $9.4 billion, according to Fidelity—the EU seems to be thinking, “Why stop at X when we can go after Musk’s entire empire?”

Think about it: SpaceX, Neuralink, the Boring Company—what do they have to do with social media disinformation? Nothing, really. But the EU’s got a grudge, and they’re not about to let a little thing like fairness or logic get in their way. Musk’s decision to pull X out of the EU’s voluntary Code of Practice against disinformation in 2023 certainly didn’t help matters. Sure, he had initially played nice back in 2022, but when Musk realized that the EU’s idea of “voluntary” meant “you’ll comply, or else,” he bailed.

Now, Brussels is retaliating by threatening to fine Musk’s companies that have nothing to do with social media, all while pretending this is about “protecting democracy.” If it sounds more like a personal vendetta than a reasoned policy decision, that’s because it probably is.

Brazil Freezes Musk’s Assets: Free Speech or Free for All?

Not to be outdone by their European counterparts, Brazil has decided to take its regulatory saber-rattling to new heights. The country’s highest court recently froze the assets of Starlink, Musk’s satellite internet venture, in an effort to squeeze a $3 million fine out of X for failing to censor content. That’s right—Brazil couldn’t get X to bend to their will, so they decided to take Musk’s satellites hostage. All in the name of combating “misinformation,” of course.

What’s particularly galling about Brazil’s move is how blatantly it ignores the principles of free speech and open communication. The accusation that X “facilitated the spread of misinformation and hate speech” sounds noble on paper, but the way Brazil went about enforcing their demands—by freezing assets of an entirely separate company—looks more like strong-arm tactics than legitimate regulation.

At this point, it’s hard to escape the conclusion that these governments are less concerned with disinformation and more interested in exerting control over tech companies that refuse to play by their increasingly arbitrary rules. Musk, who’s spent years promoting free speech as one of X’s core principles, is now facing a global game of whack-a-mole, with each country seemingly more eager than the last to punish him for refusing to fall in line.

Personal Accountability or Public Power Play?

One of the more interesting twists in the EU’s regulatory circus is the suggestion that they might hold Musk personally accountable under the DSA.

Why? Because, according to the EU’s interpretation, “the entity exercising decisive influence” over a platform—whether that’s a company or an individual—can be on the hook for any wrongdoing. In other words, if Musk’s platform doesn’t comply, they’re coming for him directly.

This is about using Musk as a punching bag to show the world that the EU is still in charge. Thomas Regnier, a spokesperson for the European Commission, helpfully clarified to Bloomberg, that the DSA’s rules apply “irrespective of whether the entity… is a natural or legal person,” which is bureaucrat-speak for, “We’re gunning for Elon.”

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Related Topics:#ElonMuskBrazil #ReclaimTheNet ChristinaMaas ElonMuskVSEU FromXToSpaceX

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California planning to double film tax credits amid industry decline

Published on April 3, 2025

Todayville

From The Center Square

By Kenneth Schrupp

California legislators have unveiled a bill to follow through with the governor’s plan of more than doubling the state’s film and TV production tax credits to $750 million.

The state’s own analysis warns it’s likely the refundable production credits generate only 20 to 50 cents of state revenue for every dollar the state spends, and the increase could stoke a “race to the bottom” among the 38 states that now have such programs.

Industry insiders say the state’s high production costs are to blame for much of the exodus, and experts say the cost of housing is responsible for a significant share of the higher costs.

The bill creates a special carve-out for shooting in Los Angeles, where productions would be able to claim refundable credits for 35% of the cost of production.

California Gov. Gavin Newsom announced his proposal last year and highlighted his goal of expanding the program at an industry event last week.

“California is the entertainment capital of the world – and we’re committed to ensuring we stay that way,” said Newsom. “Fashion and film go hand in hand, helping to express characters, capture eras in time and reflect cultural movements.”

With most states now offering production credits, economic analysis suggests these programs now produce state revenue well below the cost of the credits themselves.

“A recent study from the Los Angeles County Economic Development Corporation found that each $1 of Program 2.0 credit results in $1.07 in new state and local government revenue. This finding, however, is significantly overstated due to the study’s use of implausible assumptions,” wrote the state’s analysts in a 2023 report. “Most importantly, the study assumes that no productions receiving tax credits would have filmed here in the absence of the credit.”

“This is out of line with economic research discussed above which suggests tax credits influence location decisions of only a portion of recipients,” continued the state analysis. “Two studies that better reflect this research finding suggest that each $1 of film credit results in $0.20 to $0.50 of state revenues.”

“Parks and Recreation” stars Rob Lowe and Adam Scott recently shared on Lowe’s podcast how costs are so high their show likely would have been shot in Europe instead.

“It’s cheaper to bring 100 American people to Ireland than to walk across the lot at Fox past the sound stages and do it and do it there,” said Lowe.

“Do you think if we shot ‘Parks’ right now, we would be in Budapest?” asked Scott, who now stars in “Severance.”

“100%,” replied Lowe. “All those other places are offering 40% — forty percent — and then on top of that there’s other stuff that they do, and then that’s not even talking about the union stuff. That’s just tax economics of it all.”

“It’s criminal what California and LA have let happen. It’s criminal,” continued Lowe. “Everybody should be fired.”

According to the Public Policy Institute of California, housing is the single largest expense for California households.

“Across the income spectrum, 35–44% of household expenditures go to covering rent, mortgages, utilities and home maintenance,” wrote PPIC.

The cost of housing due to supply constraints now makes it nearly impossible for creatives to get their start in LA, said M. Nolan Gray, legislative director at housing regulatory reform organization California YIMBY.

“Hollywood depends on Los Angeles being the place where anybody can show up, take a big risk, and pursue their dreams, and that only works if you have a lot of affordable apartments,” said Gray to The Center Square. “We’ve built a Los Angeles where you have to be fabulously wealthy to have stable and decent housing, and as a result a lot of folks either are not coming, or those who are coming need to paid quite a bit higher to make it worth it, and it’s destroying one of California’s most important industries.”

“Anybody who arrived in Hollywood before the 2010s, their story is always, ‘Yeah, I showed up in LA, and I lived in a really, really dirt-cheap apartment with like $10 in my pocket.’ That just doesn’t exist anymore,” continued Gray. “Does the Walt Disney of 2025 not take the train from Kansas City to LA? Almost certainly not. If he goes anywhere, he goes to Atlanta.”

Business

Trump orders 10% baseline tariff on imports, closes de minimis loophole

Published on April 2, 2025

Todayville

From The Center Square

By Brett Rowland

Reciprocal tariffs higher on many nations

President Donald Trump on Wednesday put the biggest piece of his new trade policy in effect by signing executive orders that place a 10% baseline tariff on all imports and much higher rates on nations that put taxes on U.S. products.

It could be the opening salvo in a global trade war, or, as Trump sees it, the beginning of a “Golden Age” for U.S. trade.

Trump also closed the small value packages loophole that allowed China to avoid taxes on packages valued at less than $800. Companies such as Temu and Shein used the loophole to ship billions of dollars worth of products directly to U.S. consumers and avoid paying the tax, as The Center Square previously reported.

President Trump speaks about tariffs at a Make America Wealthy Again event

White House

Trump’s moves on Wednesday, which he termed “Liberation Day” for U.S. trade, marked the most significant shift in U.S. trade policy since the end of World War II.

In a speech from the White House’s Rose Garden, Trump said foreign nations for decades have stolen American jobs, factories and industries. He said the tariffs would bring in new jobs, factories and industries and return the U.S. to a manufacturing superpower.

“Our country and its taxpayers have been ripped off for more than 50 years,” Trump said. “But it is not going to happen anymore.”

Trump’s supporters praised the trade overhaul. U.S. Rep. Marjorie Taylor Greene said it was time for foreign nations to pay up.

“If you want to do business in America, you need to play by our rules,” she said. “For too long, American businesses, big and small, have been ripped off by bad trade deals and unfair competition. President Trump is putting a stop to it. He’s standing up for our workers, our companies and our consumers.”

Critics slammed Trump’s trade plans.

“Donald Trump may want to call this ‘Liberation Day,’ but there is nothing liberating for working families who are grappling with the high costs of food, housing, and utilities,” said Illinois Gov. J.B. Pritzker, a Democrat. “Tariffs are a tax. They are a tax on working families, a tax on groceries, and a tax on other everyday necessities.”

Other countries planned their own responses. The European Union plans to retaliate with its own measures.

“Europe has not started this confrontation,” EU boss Ursula von der Leyen said in a speech. “We do not necessarily want to retaliate but, if it is necessary, we have a strong plan to retaliate and we will use it.”

She said tariffs are taxes “paid by the people.”

“But Europe has everything to protect our people and our prosperity,” she wrote on X. “We will always promote & defend our interests and values. And we will always stand up for Europe.”

China, the world’s second-largest economy, said Monday that it was planning to coordinate its response to U.S. tariffs with Japan and South Korea.

Japan’s Prime Minister Shigeru Ishiba said Tuesday that he was willing to fly to the U.S. to meet with Trump to get an exemption for Japanese vehicle makers. He also said the government will take steps to minimize the impact of U.S. tariffs on Japanese industries and jobs.

Trump will impose a 10% tariff on all countries that will take effect April 5, 2025 at 12:01 a.m. EDT. Trump will impose an individualized reciprocal tariff on the countries with which the United States has the largest trade deficits, including China, India and Vietnam, among others. All other countries will continue to be subject to the 10% tariff baseline, according to the White House.

“These tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated,” according to a White House fact sheet.

Trump’s executive order also gives him authority to increase the tariffs

“if trading partners retaliate” or “decrease the tariffs if trading partners take significant steps to remedy non-reciprocal trade arrangements and align with the United States on economic and national security matters,” according to the White House.

“Foreign cheaters have stolen our jobs, ransacked our factories and foreign scavengers have torn apart our once beautiful American dream,” Trump said in the Rose Garden.

For China, the tariff rate will be about 34% on imports from the world’s most populous nation. For European Union countries, it will be 20%. For Japan, the duty will be 24%. Imports from India will get a 26% tariff. Cambodia will get hit with a 49% tariff, among the highest Trump outlined on Wednesday.

For months, the U.S. Chamber of Commerce has warned that tariffs could increase costs for U.S. consumers and hurt businesses. Neil Bradley, the chamber’s chief policy officer, said businesses large and small don’t want tariffs.

“What we have heard from business of all sizes, across all industries, from around the country is that these broad tariffs are a tax increase that will raise prices for American consumers and hurt the economy,” he said.

Last week, Trump announced a 25% tariff on imported automobiles and auto parts, duties that he said would be “permanent.” The White House said it expects the auto tariffs on cars and light-duty trucks will generate up to $100 billion in federal revenue.

Trump said he hopes to bring in $600 billion to $1 trillion in tariff revenue in the next year or two. Trump also said the tariffs would lead to a manufacturing boom in the U.S., with auto companies building new plants, expanding existing plants and adding jobs.