The United States government has moved to support Elon Musk and his social media company X in their legal challenge against a €120 million penalty imposed by the European Commission under the European Union’s Digital Services Act.
The U.S. Department of Justice said on September 24 that it had submitted an application to intervene in the cases before the EU’s General Court. The intervention seeks to support Musk and X as they attempt to overturn the European Commission’s December 2025 decision.
Why X Was Fined
The European Commission imposed the €120 million fine on X in December 2025, describing it as the first non-compliance decision under the Digital Services Act.
According to the Commission, the penalties were linked to several transparency-related violations. These included the way X used its blue checkmark system, shortcomings in its advertising database and restrictions affecting researchers seeking access to publicly available data.
The EU said the platform’s paid verification system could make it difficult for users to determine whether an account was genuinely verified. It also said X’s advertising repository did not provide sufficient information or accessibility for independent scrutiny.
Washington Challenges EU’s Approach
The U.S. Justice Department argues that the European Commission went too far in applying its regulatory authority to American companies.
Assistant Attorney General Brett Shumate said the United States has concerns about the Commission’s interpretation of its jurisdiction and the way responsibility was attributed to Musk and companies associated with him. The Justice Department also raised broader concerns about the potential consequences for U.S.-based digital companies operating in Europe.
The U.S. government’s filing does not itself overturn the EU penalty. The General Court must first consider the request to intervene and the underlying legal challenges.
Musk and X Challenge the Decision
Musk filed a separate case against the European Commission in February 2026 seeking to have the decision annulled. Court records show that he is challenging the Commission’s December 2025 decision and, alternatively, seeking changes to the penalties imposed on him.
X has also challenged the EU decision. The legal dispute is taking place against a wider debate over how European digital regulations should apply to large technology companies headquartered outside the EU.
X Has Also Taken Steps Toward Compliance
While the legal challenge continues, X has taken measures aimed at addressing some of the issues identified by European regulators.
In July 2026, the European Commission accepted an action plan from X covering improvements to its advertising repository and access to public data for eligible researchers. The plan includes better search functions, faster responses, additional advertising information and API-based access.
The Commission also said X would improve the process through which researchers request access to public data and remove contractual restrictions that prevented eligible researchers from independently accessing such information.
A Wider US-EU Technology Dispute
The case has become part of a broader disagreement between Washington and Brussels over the regulation of major technology companies.
The Digital Services Act gives the EU a framework for regulating very large online platforms and addressing issues involving transparency, illegal content and systemic risks. Companies can face significant penalties when regulators determine that they have violated the rules.
The U.S. intervention now brings the American government directly into the court proceedings surrounding the X case. The General Court will ultimately determine how the legal challenges proceed and whether the Commission’s decision should stand.
For X and Musk, the case could have implications beyond the €120 million penalty, particularly regarding the reach of EU digital regulation and the responsibilities of major U.S.-based technology companies operating in the European market.
