As Musk Plans How to Change Twitter, EU Reminds Him: ‘We Have Rules’

Thierry Breton, European Commissioner for Internal Market speaks during a signature ceremony regarding the Chips Act at EU headquarters in Brussels, Belgium, February 8, 2022. (Reuters)
Thierry Breton, European Commissioner for Internal Market speaks during a signature ceremony regarding the Chips Act at EU headquarters in Brussels, Belgium, February 8, 2022. (Reuters)
TT
20

As Musk Plans How to Change Twitter, EU Reminds Him: ‘We Have Rules’

Thierry Breton, European Commissioner for Internal Market speaks during a signature ceremony regarding the Chips Act at EU headquarters in Brussels, Belgium, February 8, 2022. (Reuters)
Thierry Breton, European Commissioner for Internal Market speaks during a signature ceremony regarding the Chips Act at EU headquarters in Brussels, Belgium, February 8, 2022. (Reuters)

The European Union's internal market chief said on Tuesday that Elon Musk could adapt Twitter as he wishes after he acquires the social media site but warned the billionaire that the bloc has strict rules for online platforms to tackle illegal content.

"It will be up to Twitter to adapt themselves ... to our rules," Thierry Breton told Reuters and one other media outlet on the deal sealed on Monday by Tesla's chief executive to buy Twitter for $44 billion.

"I think Elon Musk knows Europe very well. He knows very well that we have some rules for the automotive industry ... and he understands that. So in Europe, in order to protect freedom of speech and to protect individuals, any companies will have to fulfill this obligation."

Musk, the world's richest person, calls himself a free speech absolutist and has criticized Twitter's moderation of a hugely influential platform that is populated by millions of users and global leaders.

The EU has rules under which content forbidden offline is also forbidden online, Breton said.

Under a Digital Services Act (DSA) agreed by the EU's 27 member states and lawmakers last week, Alphabet unit Google, Meta and other large online platforms will risk hefty fines if they do not control illegal content.

Breton said big platforms of more than 45 million users would have to have more moderators than smaller ones, including moderators in every European language, and they would have to open their algorithms to regulators.

Under the DSA, big tech companies face fines up to 6% of their global revenue for violating the rules while repeated breaches could see them banned from doing business in the EU.

The new rules ban advertising aimed at children or based on religion, gender, race and political opinions.

Critics of Musk's takeover of Twitter fear it will mean less moderation and the reinstatement of banned individuals, including former US President Donald Trump.

Breton said he had no intention of interfering in the Trump question because such matters would now be regulated in Europe and company boards would not have a say.

"Remember, the information space does not belong to any private company," he said. "The information space is part of our responsibility as politicians. Like territorial space ... airspace, our digital space is our responsibility to organize."



Google-parent Alphabet Earnings Shine with Help of AI

Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
TT
20

Google-parent Alphabet Earnings Shine with Help of AI

Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP

Google-parent Alphabet on Wednesday reported quarterly profits that topped expectations, saying artificial intelligence has boosted every part of its business.

Alphabet's second-quarter profit of $28.2 billion -- on $96.4 billion in revenue -- came with word that the tech giant will spend $10 billion more than it previously planned this year on capital expenditures, as it invests to meet growing demand for cloud services.

"We had a standout quarter, with robust growth across the company," said Alphabet chief executive Sundar Pichai.

"AI is positively impacting every part of the business, driving strong momentum."

Revenue from search grew double digits in the quarter, with features such as AI Overviews and the recently launched AI mode "performing well," according to Pichai.

Ad revenue at YouTube continues to grow along with the video platform's subscription services, Alphabet reported.

Alphabet's cloud computing business is on pace to bring in $50 billion over the course of the year, according to the company.

"With this strong and growing demand for our cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead," Pichai said.

Alphabet shares were up nearly 2 percent in after-market trades that followed the release of the earnings figures.

Investors have been watching closely to see whether the tech giant may be pouring too much money into artificial intelligence and whether AI-generated summaries of search results will translate into fewer opportunities to serve up money-making ads.

The internet giant is dabbling with ads in its new AI Mode for online search, a strategic move to fend off competition from ChatGPT while adapting its advertising business for an AI age.

The integration of advertising has been a key question accompanying the rise of generative AI chatbots, which have largely avoided interrupting the user experience with marketing messages.

However, advertising remains Google's financial bedrock.

"Google is doing well despite tariff headwinds and rising AI competition in search," said eMarketer principal analyst Yory Wurmser.

"It's also successfully monetizing AI Overviews and AI Mode, a good sign for the future."

Google and rivals are spending billions of dollars on data centers and more for AI, while the rise of lower-cost model DeepSeek from China raises questions about how much needs to be spent.

Antitrust battles

Meanwhile the online ad business that generates the cash Google invests in its future could be neutered due to a defeat in a US antitrust case.

During the summer of 2024, Google was found guilty of illegal practices to establish and maintain its monopoly in online search by a federal judge in Washington.

The Justice Department is now demanding remedies that could transform the digital landscape: Google's divestiture from its Chrome browser and a ban on entering exclusivity agreements with smartphone manufacturers to install the search engine by default.

District Judge Amit Mehta is considering "remedies" in a decision expected in the coming days or weeks.

In another legal battle, a different US judge ruled this year that Google wielded monopoly power in the online ad technology market, another legal blow that could rattle the tech giant's revenue engine.

District Court Judge Leonie Brinkema ruled that Google built an illegal monopoly over ad software and tools used by publishers.

Combined, the courtroom defeats have the potential to leave Google split up and its influence curbed.

Google said it is appealing both rulings.