The United States government has launched an unprecedented legal intervention to support Elon Musk in his fight to scrap a €120 million (£103 million) fine imposed by the European Union on his social media platform, X.
The US Department of Justice (DOJ) filed an application to intervene in the case at the General Court of the European Union in Luxembourg on Thursday, 24 September 2026. The move marks a significant escalation in the regulatory friction between Washington and Brussels over the policing of digital platforms.
The penalty was originally issued by the European Commission on 5 December 2025, following an investigation under the Digital Services Act (DSA). Regulators argued that X had breached several transparency and safety rules.
Breakdown of the €120 Million Fine
The European Commission’s penalty is comprised of three distinct areas of alleged non-compliance:
- €45 million: Relating to the “blue tick” verification system, which the EU claims deceives users into believing accounts have been meaningfully verified.
- €35 million: For failures in advertising transparency.
- €40 million: For blocking researcher access to public data.
In its filing, the US government officially backed Musk’s bid to annul the decision. Assistant Attorney General Brett A. Shumate accused the European Commission of “regulatory overreach,” suggesting the EU was attempting to exert control over “American engines of innovation” that do not fall under its intended jurisdiction.
“Sovereign Right” to Protect Citizens
The European Commission responded on Friday, 25 September, confirming its intention to defend the fine in court. Commission spokesperson Thomas Regnier stated that the EU has a “sovereign right” to draft and enforce legislation designed to protect its citizens and ensure digital transparency.
The legal battle is centred on two specific cases currently before the EU General Court: X Internet and X Holdings v. Commission (Case T-114/26) and Musk v. Commission (Case T-121/26).
According to the Department of Justice, the US believes the EU is inappropriately expanding its authority to American companies. Conversely, EU regulators maintain the DSA is a matter of consumer protection and transparency, rather than political censorship.
The outcome of the cases in Luxembourg is expected to set a major international precedent regarding the extent to which European regulators can penalise and influence the operations of technology firms headquartered in the United States. No immediate changes to how X operates in the UK or Europe are expected until the court delivers its final verdict.
