The probe centres on allegations that X failed to assess risks associated with Grok's image-editing features, which reportedly generated thousands of non-consensual intimate images of individuals, including minors.
"In Europe, no company will make money by violating our fundamental rights," EU's digital spokesperson Thomas Regnier said.
"One will argue that X has limited this to premium subscribers. Let’s be very clear: child sexual abuse material is not a premium privilege because such output has no place in Europe and we need to protect our citizens from potential future harms," he added.
The investigation invokes the EU's Digital Services Act (DSA), which requires large technology companies to combat illegal and harmful content online.
The Commission alleges X violated these rules by failing to conduct proper risk assessments before deploying Grok's functionality and by not implementing adequate safeguards.
Following widespread criticism, X restricted some of Grok's features.
However, the Commission maintains this does not resolve the underlying issues.
The Commission has also expanded an ongoing investigation, launched in December 2023, to examine Grok's recommender systems and how the chatbot suggested content to users based on their previous activity.
Under DSA provisions, companies found in breach face fines of up to 6 percent of their global annual turnover.
X was already fined EUR 120 million by the Commission last month for separate violations of EU regulations.
The probe threatens to further strain relations between Brussels and Washington, with President Donald Trump previously warning the EU against what he described as unfair and discriminatory treatment of American companies.
(ał)
Source: PAP, IAR