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

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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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CBC’s business model is trapped in a very dark place

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The Audit

 

 David Clinton

I Testified Before a Senate Committee About the CBC

I recently testified before the Senate Committee for Transport and Communications. You can view that session here. Even though the official topic was CBC’s local programming in Ontario, everyone quickly shifted the discussion to CBC’s big-picture problems and how their existential struggles were urgent and immediate. The idea that deep and fundamental changes within the corporation were unavoidable seemed to enjoy complete agreement.

I’ll use this post as background to some of the points I raised during the hearing.

You might recall how my recent post on CBC funding described a corporation shedding audience share like dandruff while spending hundreds of millions of dollars producing drama and comedy programming few Canadians consume. There are so few viewers left that I suspect they’re now identified by first name rather than as a percentage of the population.

Since then I’ve learned a lot more about CBC performance and about the broadcast industry in general.

For instance, it’ll surprise exactly no one to learn that fewer Canadians get their audio from traditional radio broadcasters. But how steep is the decline? According to the CRTC’s Annual Highlights of the Broadcasting Sector 2022-2023, since 2015, “hours spent listening to traditional broadcasting has decreased at a CAGR of 4.8 percent”. CAGR, by the way, stands for compound annual growth rate.

Dropping 4.8 percent each year means audience numbers aren’t just “falling”; they’re not even “falling off the edge of a cliff”; they’re already close enough to the bottom of the cliff to smell the trees. Looking for context? Between English and French-language radio, the CBC spends around $240 million each year.

Those listeners aren’t just disappearing without a trace. the CRTC also tells us that Canadians are increasingly migrating to Digital Media Broadcasting Units (DMBUs) – with numbers growing by more than nine percent annually since 2015.

The CBC’s problem here is that they’re not a serious player in the DMBU world, so they’re simply losing digital listeners. For example, of the top 200 Spotify podcasts ranked by popularity in Canada, only four are from the CBC.

Another interesting data point I ran into related to that billion dollar plus annual parliamentary allocation CBC enjoys. It turns out that that’s not the whole story. You may recall how the government added another $42 million in their most recent budget.

But wait! That’s not all! Between CBC and SRC, the Canada Media Fund (CMF) ponied up another $97 million for fiscal 2023-2024 to cover specific programming production budgets.

Technically, Canada Media Fund grants target individual projects planned by independent production companies. But those projects are usually associated with the “envelope” of one of the big broadcasters – of which CBC is by far the largest. 2023-2024 CMF funding totaled $786 million, and CBC’s take was nearly double that of their nearest competitor (Bell).

But there’s more! Back in 2016, the federal budget included an extra $150 million each year as a “new investment in Canadian arts and culture”. It’s entirely possible that no one turned off the tap and that extra government cheque is still showing up each year in the CBC’s mailbox. There was also a $93 million item for infrastructure and technological upgrades back in the 2017-2018 fiscal year. Who knows whether that one wasn’t also carried over.

So CBC’s share of government funding keeps growing while its share of Canadian media consumers shrinks. How do you suppose that’ll end?

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Can’t afford Rent? Groceries for your kids? Trudeau says suck it up and pay the tax!

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Watch Canada’s Prime Minister tell an anti-poverty group, your ability to buy “groceries for my kids” is less important than sacrificing to pay his carbon tax.

In case you still thought there might be even the tiniest chance Justin Trudeau might come around.. well this settles it. He is as they say, ‘beyond the pale’.

Sure we’ve pieced this together over the last number of years, but it’s still SHOCKING to see him say it directly, proclaim it proudly. This week Trudeau received applause from an audience of the intellectually suffering at something called the “Global Citizen Now” panel discussion on the sidelines of the G20 Leaders’ Summit in Rio.

Much appreciation for the first short video below to Opposition Leader Pierre Poilievre who shared his ferocious reaction to Trudeau’s anti-human comments, challenging the current PM to call an immediate election.

Or course there will be no quick election call. To Justin, it’s more important to cling to the undercarriage of a taxpayer funded jet so he can fly the globe stunning audiences unfortunately already stunned by their utter terror of losing the planet.

In their horror at their inability to turn the switch off and let us all freeze/starve to death this winter, they applaud lovingly for their intellectual leader/sock model as he describes how hard it is to convince angry, hungry people they really need to suck it up.

If only he read a history book.. any history book.. apologies, any book at all. Truly even spending some time with the literary version of an Al Gore video rant would at lest keep JT occupied so he couldn’t speak for a few moments. I’m pretty sure every time he opens his mouth, the temperature in Canada rises as millions of frustrated hotheads (hello there) explode, spewing steam high up into the upper atmosphere where water particles do much more damage to our planet than the final exhaling of a non grocery-eating-planet-loving-Canadian.

Watch Pierre Poilievre’s video and assuage the ensuing headache by mapping out your route to a polling booth. If this doesn’t sell a couple of those ‘Axe the Tax’ shirts for the Poilievre team, well.. enjoy your stroll to the foodbank.

Here’s a link to his entire discussion. If you have a strong stomach and 20 minutes of your life to donate to a higher cause… No silly, not the intended cause of the anti-poverty group… But to the intellectual cause of understanding just how twisted the logic has become for those who fly around the world to wine and dine, only to break long enough to tell us they think it’s perfectly fine if we can’t buy groceries for our kids.

By the way, please save a bit of your shock and disappointment for the hapless host of the ‘anti-poverty’ Global Citizen. This was apparently on the sidelines of a G20 Summit.  I would expect this drivel to be called out at a respectable middle school debate. Apparently the ‘anti-poverty’ Global Citizen people aren’t overly concerned with poverty. Do we need to say that not being able to afford groceries is in fact THE definition of poverty?  Or course not. It would be much easier for them to change their name to Former Global Citizens.

You were warned.

Prime Minister Justin Trudeau sits down for a conversation with Michael Scheldrick, co-founder of the anti-poverty group Global Citizen, on the sidelines of the G20 Leaders’ Summit Rio de Janeiro, Brazil.

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