US Backs Elon Musk’s Legal Challenge Against EU Fine on X

US Backs Elon Musk’s Legal Challenge Against EU Fine on X

The United States government has formally sought to join Elon Musk’s legal challenge against a €120 million fine imposed by the European Union on his social media platform, X.

Report says the US Department of Justice filed an application with the EU’s General Court in support of X’s bid to have the penalty annulled.

The European Commission imposed the fine in December 2025 after a two-year investigation under the bloc’s Digital Services Act.

The Commission said X had breached transparency requirements relating to its blue checkmark system, advertising repository and access to public data for researchers.

The EU’s penalty was the first non-compliance decision issued under the Digital Services Act, which sets rules for major online platforms operating in the bloc.

Assistant Attorney General Brett Shumate of the US Justice Department’s civil division said the European Commission had improperly extended its regulatory authority to American companies.

“The European Commission inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction,” Shumate said.

The US government has criticised aspects of the EU’s regulation of major technology companies, while the European Commission has maintained that its digital rules apply without regard to companies’ nationality.

The European Commission has said the Digital Services Act is intended to protect users and strengthen transparency and accountability among major online platforms.

The US move comes as X continues its legal challenge against the EU penalty.

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In July 2026, the European Commission accepted an action plan from X aimed at addressing some of the platform’s DSA compliance issues, including improvements to its advertising repository and greater access to public data for eligible researchers.

Since Musk acquired X, formerly known as Twitter, in 2022, the platform has faced regulatory scrutiny in Europe over its compliance with the bloc’s digital rules.

The EU’s regulatory action has also become part of a broader dispute between Washington and Brussels over the regulation of large American technology companies.

About the Author

Cecilia Attah

Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.