Elon Musk’s battle with European regulators over a €120 million fine imposed on X has taken a bigger international turn, with the United States government seeking to join the legal challenge. Washington argues that the European Commission went too far in applying its digital rules to a major American technology company.
Highlights
- The US government wants to intervene in X’s legal challenge against the EU.
- X was fined €120 million over its blue verification system and other transparency issues.
- Washington argues the EU improperly extended its authority over a US-based company.
- Elon Musk has previously criticised European technology regulations.
- EU regulators are also investigating X’s AI assistant Grok.
Main Story
Washington Steps Into Musk’s Legal Battle
The US government has thrown its weight behind Elon Musk and X as they challenge a €120 million penalty imposed by the European Union.
The US Department of Justice has filed an application before the EU’s General Court seeking permission to intervene in the case.
The move puts Washington directly into a dispute that has already become part of a wider argument between the US and EU over how technology companies should be regulated.
US Assistant Attorney General Brett A. Shumate said European regulators had gone beyond what he considered appropriate by attempting to exercise authority over an American company.
Why X Was Fined
The European Commission imposed the fine in December 2025, accusing X of misleading users through its blue verification system.
Under the platform’s paid verification model, users can obtain blue checkmarks without the type of identity verification traditionally associated with verified accounts.
EU regulators argued that this could make it difficult for users to determine whether a particular account genuinely belongs to the person or organisation it claims to represent.
The Commission also criticised X over its advertising transparency and its handling of access to publicly available data for researchers.
The penalty represented the Commission’s first formal non-compliance decision under the Digital Services Act, a major piece of EU legislation governing large online platforms.
US Says EU Is Overreaching
The Justice Department’s application argues that the United States has a legitimate interest in the outcome of the case.
Washington wants the court to consider whether the Commission’s approach is consistent with established principles governing the territorial reach of national and regional laws.
The US government also argues that the decision could have wider consequences for American digital companies operating internationally.
According to the Justice Department, it wants to ensure that European enforcement does not unfairly affect US-based digital services that play an important role in the American economy.
Musk Has Long Criticised EU Tech Rules
Musk has previously attacked European technology regulations, arguing that excessive regulation can slow innovation and make it harder for technology companies to develop.
His position has also received support from senior officials in the Trump administration.
US Secretary of State Marco Rubio previously criticised the European penalty, describing it as an attack not only on X but also on American technology companies and their users.
Musk reposted Rubio’s comments and endorsed the sentiment.
EU Defends Its Position
European officials have rejected claims that the Commission is specifically targeting American companies.
EU regulators maintain that the rules apply to digital platforms operating within the European market, regardless of where those companies are headquartered.
The Commission has argued that the regulations are designed to protect users, improve transparency and strengthen democratic safeguards online.
EU technology regulator Henna Virkkunen said when the penalty was announced that X had been held responsible for practices that weakened user rights and accountability.
More Investigations Await X
The legal fight over the blue verification system is not the only regulatory challenge facing X in Europe.
EU authorities are also investigating other aspects of the platform, including its artificial intelligence assistant Grok.
One investigation is examining concerns over the use of Grok to generate sexualised images of real people.
The growing regulatory pressure means X’s dispute with Brussels could have consequences extending well beyond the €120 million penalty.
For Washington, meanwhile, the case has become part of a broader debate over whether European digital regulations are crossing into the territory of American companies and potentially affecting US economic interests.
As governments and tech giants clash over who gets to set the rules online, one question is becoming harder to ignore: where should the power to regulate the internet actually stop?
