The European Commission has pledged to stand by its €120 million fine against X in court, after the United States government formally moved to support Elon Musk's legal bid to have the penalty overturned. The dispute marks a deepening transatlantic rift over digital regulation and represents the most direct intervention yet by Washington into EU enforcement proceedings against an American tech company.
The Commission fined X in December 2025 following a two-year investigation — the first penalty issued under the EU's Digital Services Act (DSA), a sweeping rulebook that requires online platforms to increase transparency, strengthen user protections and grant researchers access to public data. Regulators found that X's paid-for blue checkmark system deceives users, because the platform allows anyone to purchase "verified" status without meaningfully confirming who is behind the account. X was also accused of failing to ensure transparency around its advertisements and blocking researchers from accessing public data. X appealed the ruling in February before the EU's General Court.
The US Department of Justice filed an application on Thursday to intervene in that appeal, arguing that the Commission had "inappropriately attempted to expand its regulatory authority" over American companies not physically operating within its jurisdiction. Assistant Attorney General Brett Shumate warned that, if upheld, the fine "may have significant implications" for US digital platforms and their contribution to the American economy. US Secretary of State Marco Rubio went further, calling the fine "an attack on all American tech platforms and the American people by foreign governments," while the Federal Communications Commission similarly accused Brussels of online censorship. Musk, who spent close to $300 million supporting Donald Trump's 2024 election campaign, reposted Rubio's remarks with his own endorsement.
The European Commission was unmoved. Spokesperson Thomas Regnier said Brussels did not need prior notification of Washington's intervention and that the fine reflects the EU's "sovereign right" to legislate in protection of its citizens. "We are enforcing our legislation objectively, transparently and with a solid case," he said, adding that the commission expects the dispute to have no bearing on broader EU-US trade talks. The Commission also denied any intent to target American companies specifically, saying it applies its rules uniformly to protect democratic and digital standards across the bloc.
The case underscores the growing friction between Brussels and Washington over the governance of Big Tech. The DSA, alongside its companion regulation the Digital Markets Act, has become a particular flashpoint with the Trump administration, which views European digital rules as a form of economic protectionism. Beyond the blue tick dispute, the Commission is conducting several additional investigations into X, including one into its AI assistant Grok over concerns it was used to generate sexualised images of real people. The outcome of the General Court proceedings is likely to set a significant precedent for how far EU digital law can reach across borders.