The United States government has stepped into Elon Musk’s legal battle with the European Union, seeking to support X’s challenge against a €120 million fine imposed by the European Commission over alleged breaches of the bloc’s digital rules.
The US Department of Justice (DOJ) filed an application on September 24 to intervene in cases brought by X and Musk before the General Court of the Court of Justice of the European Union, seeking to annul the Commission’s December 2025 decision.
The move escalates a broader dispute over how far European digital regulations can reach companies headquartered in the United States.
The European Commission imposed the €120 million penalty on X in December 2025 under the Digital Services Act (DSA), citing three areas of non-compliance: the design of X’s blue verification checkmark, inadequate transparency in its advertising repository and failure to provide researchers with access to public data.
The Commission said X’s paid blue checkmark could mislead users because people could obtain the verification status without meaningful verification of their identity.
The US government, however, argues that the Commission went too far in applying its regulatory authority to American companies.
US Assistant Attorney General Brett A. Shumate said the European Commission had “inappropriately attempted to expand its regulatory authority” to American companies outside its jurisdiction.
According to the DOJ, the US has a clear interest in ensuring that the EU’s approach to jurisdiction is consistent with established principles of international law and does not unfairly affect US-headquartered digital companies.
The department also raised concerns about the Commission’s treatment of Musk personally and its approach to corporate structures.
The DOJ said the EU decision could have broader implications for “very large online platforms” and other digital businesses headquartered in the US that operate in European markets.
The European Commission has defended its action and is prepared to argue its case before the General Court.
The dispute centres on the reach of the EU’s Digital Services Act, which imposes transparency and other obligations on major online platforms serving European users.
The Commission’s December 2025 decision was its first non-compliance decision under the DSA.
The regulator has also continued to require changes from X. In July 2026, it accepted an action plan from the company to improve its advertising repository and provide eligible researchers with access to public data.
Under the plan, X committed to improve search functions in its advertising database, provide additional information about advertisements and offer researchers access to public data through an API.
The company also agreed to change its procedures for researchers seeking access to public data.
The legal dispute nevertheless leaves the underlying €120 million penalty before the EU courts.
For US technology companies operating globally, the case could have wider implications because it raises questions about the extent to which regulators can impose obligations on companies headquartered outside their jurisdiction.
The US intervention therefore places X’s legal challenge within a broader debate over digital regulation, corporate jurisdiction and the authority of governments to regulate global technology platforms.
The outcome will be closely watched by other US-based technology companies operating in the European market, where the DSA has become a central framework for regulating large online platforms.
