EU Ready to Defend €120 Million Fine Against X as US Backs Musk Challenge

The European Commission has said it is prepared to defend a €120 million ($137 million) penalty imposed on the social media platform X, after the United States government backed a legal attempt by Elon Musk to have the case thrown out.

The fine, issued late last year, was the first penalty under the European Union's digital regulations governing online content. It followed a two-year investigation. Regulators found that X's blue checkmarks breached the rules through deceptive design practices that could expose users to scams and manipulation.

In an unusual move, the US Justice Department said on Thursday that it had filed an application at the EU's General Court to support X's bid to annul the decision. The department warned that upholding the fine "may have significant implications" for American online platforms and other companies offering digital services in the EU.

Assistant Attorney General Brett Shumate, of the Justice Department's Civil Division, said the European Commission had "inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction." He added that Washington would not tolerate what he described as regulatory overreach aimed at controlling American innovation and economic growth.

European Commission spokesperson Thomas Regnier said it is the EU's "sovereign right" to draft legislation designed to protect its citizens. "We are enforcing our legislation objectively, transparently and with a solid case," he told reporters. "We are ready to defend our position in court. We have a lot of evidence at our disposal, and it will be for the court to decide as always."

Asked whether the Justice Department had informed the commission of its intention to back Musk, Regnier replied: "We do not need to be informed about anything." He said the commission does not expect the case to damage broader relations between Brussels and Washington, including talks aimed at mitigating the impact of Trump administration tariffs. "From our perspective, nothing will change because of a DSA case," he said.

The commission is the chief enforcer of the 27-nation bloc's Digital Safety Act, which requires technology companies to clean up their online platforms under threat of substantial financial penalties. The rulebook has become a point of friction with the Trump administration, and US officials have criticised it as amounting to online censorship.