US backs Musk’s X in challenge to €120m EU fine

The US government has asked to join Elon Musk and X’s legal challenge against a €120 million fine imposed by the European Commission over alleged breaches of the European Union’s Digital Services Act. The US Department of Justice filed its application with the EU’s General Court on Thursday, arguing that Washington has a clear interest in the case because of its potential implications for American technology companies.

DOJ Raises Jurisdiction Concerns

US Assistant Attorney General Brett A. Shumate said the European Commission had attempted to extend its regulatory authority to American companies beyond the EU’s jurisdiction. The Justice Department said it wants the court to consider whether the Commission’s approach is consistent with international principles governing territorial jurisdiction.

Fine Imposed Over Blue Checkmarks

The European Commission fined X €120 million in December 2025, describing the penalty as its first non-compliance decision under the Digital Services Act. Regulators said X’s blue checkmark system could mislead users because accounts could obtain verified status by paying without meaningful verification of the person behind the account.

Other Violations Cited

The EU’s decision also concerned X’s advertising repository and its handling of researchers’ access to public data. The Commission said X had failed to provide sufficient transparency about advertisements and had imposed barriers that restricted eligible researchers from accessing public information on the platform.

Musk Challenges the Decision

Musk and X are separately challenging the Commission’s decision before the EU’s General Court. The cases seek to annul the December 2025 decision and the €120 million penalty. The US intervention application is intended to support those challenges.

Washington Defends American Companies

The Justice Department said the United States has an interest in ensuring that any ruling does not adversely affect US-based digital services companies operating internationally. It also raised concerns about the Commission’s approach to determining which companies and individuals can be held responsible under the DSA.

EU Defends Its Regulation

The European Commission has said it is prepared to defend its decision in court. EU officials maintain that the enforcement action concerns compliance with European digital rules rather than the nationality of the company involved.

X Has Taken Corrective Steps

The Commission accepted an action plan from X in July 2026 addressing several of the transparency concerns identified under the DSA. The measures include improvements to the advertising repository and changes intended to give eligible researchers better access to public data.

Wider US-EU Technology Dispute

The case adds another point of tension between Washington and Brussels over the regulation of major technology companies. US officials have previously criticised EU digital regulations, while European authorities have defended the DSA as a framework for regulating large online platforms operating in the European market.

More EU Investigations Continue

The €120 million case is separate from other European Commission investigations involving X. EU regulators are also examining issues connected to the platform’s AI assistant Grok, including concerns surrounding the generation and distribution of manipulated sexualised images.

Court Battle Moves Forward

The General Court will now consider the US government’s request to intervene alongside the underlying legal challenges brought by X and Musk. The outcome could have wider implications for how EU digital regulations are applied to major US-based technology companies operating within Europe.