- US Justice Department supports Elon Musk's challenge to EU's 120 million euro fine on X
- EU fined X for breaching Digital Services Act, citing deceptive blue checkmark practices
- US warns EU rules could burden American tech firms and affect online platforms in Europe
The US government has backed Elon Musk's legal challenge against a 120 million euro fine imposed by the European Union on his social media platform X. The US Justice Department has filed an application supporting X's bid to have the penalty annulled by the EU's General Court.
The European Commission imposed a fine after a two-year investigation into X's compliance with the bloc's Digital Services Act (DSA). EU regulators said the platform had breached digital rules, including those governing its blue checkmark system, which they said involved deceptive design practices that could leave users vulnerable to scams and manipulation, according to a BBC report.
The European Commission also raised concerns about X's transparency and compliance with online service rules. The fine was the first imposed under the EU's digital rules for online content.
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The US Justice Department has argued that the EU's regulatory framework could place significant burdens on American technology companies. Assistant Attorney General Brett Shumate said the European Commission had attempted to extend its regulatory authority to American companies that were not present or operating within its jurisdiction.
The US department also warned that the case could have wider implications for American online platforms and digital service providers operating in Europe.
European Commission spokesperson Thomas Regnier said the EU had the sovereign right to create laws aimed at protecting its citizens and that the commission was enforcing its rules objectively and transparently. He added that the bloc was prepared to defend the fine in court.
The DSA requires major technology companies to take measures against harmful or illegal content on their platforms and allows the EU to impose financial penalties for violations. The legislation has become a source of tension between Brussels and Washington, with US officials criticising it as a form of online censorship.
The dispute comes amid recent efforts by Musk and US President Donald Trump to ease tensions following a public disagreement last year. Musk also attended a state dinner hosted by Trump for Chinese President Xi Jinping on September 24.
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Despite the legal dispute, Regnier said the European Commission did not expect the case to damage broader EU-US relations, including ongoing discussions over tariffs imposed by the Trump administration.
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