"I was involuntarily undressed by Elon Musk’s Grok on X." Swedish Deputy Prime Minister Ebba Busch said in a recent video on the platform. She is one of countless victims of a feature on X's AI chatbot, Grok, that allows users to digitally strip women and children of their clothing. In less than two weeks, Grok generated three million sexualized images, including tens of thousands that appear to depict children.
Now, the European Commission, the EU’s executive arm, has launched an investigation into Grok under the Digital Services Act, or DSA. The Commission said it would "assess whether the company [X] properly assessed and mitigated risks associated with the deployment of Grok's functionalities into X in the EU."
The investigation could set an important precedent in confronting US tech firms and protecting citizens from privacy violations. "If they can go up against Musk, that is huge," Joanna Bryson, professor of ethics and technology at the Hertie School university in Berlin, told DW. "It tells everybody the EU is serious."
EU has the laws to protect from AI harm
But how much power does the EU have? Under its laws, the bloc can regulate digital services much like physical products. Just as unsafe toys or appliances can be banned from the European market, online platforms that break EU rules can be forced to change — or be shut out entirely.
"The DSA is arguably the most powerful platform regulation in the world," said Philipp Hacker, professor of law and ethics at the Viadrina University in Frankfurt an der Oder. Rather than targeting specific technologies, it addresses broad categories such as "systemic risks," giving the European Commission flexibility to respond to new harms as AI evolves. Grok’s undressing function did not exist when the DSA entered into force in 2022.
The EU has two main enforcement tools. It can fine X up to 6% of its global annual turnover, a measure it already used in December, when it fined the platform €120 million ($143 million) for breaching DSA transparency rules. In cases of repeated violations, the Commission can also block the platform entirely within the EU. For now, a fine is seen as the more likely next step.
The EU’s leverage is strengthened by its market size. As one of the world’s largest consumer markets, it wields significant influence over global tech firms.
EU reportedly delayed start of Grok investigation
Still, experts question whether the Commission will push hard enough to set a lasting precedent. “We have a lot of provisions protecting fundamental rights. The problem is there enforcement, making sure they are not disregarded,” says Marco Bassini, assistant professor of Fundamental Rights and Articifical Intelligence at Tilburg University.
At a time of strained EU-US relations, Brussels has been cautious about fully deploying its regulatory power against American tech companies. According to reporting by the German newspaper Handelsblatt, the launch of the Grok investigation was delayed by the office of Commission President Ursula von der Leyen amid a tariff dispute between the EU and the US over Greenland. In the past, US Commerce Secretary Howard Lutnick linked tariff reductions to weakening EU tech regulation.
"I think a big mistake was made," Member of the European Parliament (MEP) Alexandra Geese told DW. "There was a lot of fear about the reaction from the US administration."
Experts doubt how far the EU is willing to go
While the eventual launch of the investigation is seen as a positive signal, doubts remain over how far the Commission is willing to go. "One has to distinguish between the legal position and the geopolitical position," said Bryson. "The Commission looks at both."
There is also skepticism over whether a 6% fine would be enough to change the behavior of the world’s wealthiest man. "We should increase this number so companies really pay attention to what the legislature expects in Europe," MEP Axel Voss told DW.
There is no concrete timeline on the investigation. According to experts, it could take months for the Commission to reach a result.
