Musk was told to deliver a "complete response" to "relevant law enforcement agencies" within 24 hours.
This threat to Musk comes less than two months after the EU passed a swath of new laws that target online social media content.
Thierry Breton, the commissioner who drafted the letter, urged Musk to deliver a "prompt, accurate, and complete response" to "relevant law enforcement agencies" within a 24-hour period.
Musk can be slapped with a fine of 6 percent of his revenues from X and even have the platform blocked in the EU should he not comply, The Guardian reports.
"Following the terrorist attacks carried out by Hamas against Israel, we have indications your platform is being used to disseminate illegal content and disinformation in the EU," Breton wrote.
"Public media and civil society organisations widely report instances of fake and manipulated images and facts circulating on your platform in the EU, such as repurposed old images of unrelated armed conflicts or military footage that actually originated from video games. This appears to be manifestly false or misleading information," he continued.
"Let me remind you that the Digital Services Act sets very precise obligations regarding content moderation," Breton threatened.
Musk notably is not a part of a code of practice the EU spearheaded earlier this year that is meant to direct social media companies on how they can adhere to the new censorship-driven laws.
While other large companies such as Facebook, Google and TikTok are taking place in this coordinated practice of censorship, Musk's X is not.
Breton emphasized that Musk supposedly has "potentially illegal content" circulating on X and that he "must be timely, diligent and objective in taking action and removing the relevant content when warranted."
He also complained that "changes in public interest policies" on X have created confusion for "many European users."
Brenton said that X is expected "to be in contact with the relevant law enforcement authorities and Europol, and ensure that you respond promptly to their requests."
This is a breaking story and will be updated.
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