EU Defends X Fine After US Backs Musk's Challenge

The European Union's executive arm stated Friday that it is prepared to defend a 120 million euro ($137 million) fine against the social media platform X. This comes after the U.S. government backed a legal effort by X owner Elon Musk to have the case dismissed. The European Commission fined X late last year for violating the bloc’s digital regulations, a move that heightened tensions with Washington.

The U.S. Justice Department filed an application on Thursday to support X's bid to annul the case at the European Union's General Court. This marks the second time in three months that the Justice Department has intervened to defend a company owned by Musk. In July, the department filed a motion to intervene in a civil rights lawsuit alleging that Musk's xAI is illegally operating natural gas turbines to power a $20 billion AI data center in Mississippi without a permit, creating health risks and violating the Clean Air Act.

The EU fine against X, which followed a two-year investigation, was the first penalty issued under the bloc's digital regulations governing online content. Regulators stated that X’s blue checkmarks breached the rules due to "deceptive design practices," potentially exposing users to scams and manipulation.

European Commission spokesperson Thomas Regnier affirmed on Friday that drafting legislation to protect its citizens is the EU’s "sovereign right." He told reporters, "We are enforcing our legislation objectively, transparently and with a solid case. 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."

The commission is the primary enforcer of the 27-nation EU's Digital Services Act, which mandates tech companies to moderate their online platforms under penalty of substantial fines.

However, the rulebook has become a point of contention with the U.S. administration, whose officials have criticized it as a form of online censorship. The Justice Department warned that the fine, if upheld, "may have significant implications" for U.S. online platforms and other companies providing digital services within the EU.

Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division stated that the "European Commission inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction." He added, "We will not tolerate the European Commission engaging in regulatory overreach to try and control American engines of innovation and economic growth."

When questioned about whether the Justice Department had informed the commission of its intention to support Musk, Regnier responded, "We do not need to be informed about anything." He also indicated that the commission does not anticipate the case will negatively impact broader relations between Brussels and Washington, particularly concerning ongoing talks to mitigate the impact of former President Trump's tariffs.

"From our perspective, nothing will change because of a DSA case," Regnier stated.