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The U.S. government has formally moved to join Elon Musk’s legal challenge against a €120 million ($136.5 million) European Union fine imposed on his social media platform X, escalating a dispute over the reach of European digital regulations.
The Trump administration filed an application with the EU’s General Court supporting X’s attempt to overturn the penalty. The European Commission imposed the fine in December 2025 over alleged violations of the bloc’s Digital Services Act (DSA), making it the first non-compliance fine issued under the legislation.
Assistant Attorney General Brett Shumate of the U.S. Justice Department’s civil division argued that the European Commission had overstepped its regulatory authority by seeking to apply EU rules to American businesses.
“The European Commission inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction,” Shumate said.
X launched its appeal at the EU General Court in February 2026, seeking to annul the Commission’s decision. The case has since developed into a broader dispute over how far European regulators can extend oversight of major U.S.-based technology companies.
The original EU enforcement action concerned several alleged DSA violations. Regulators found problems with X’s blue verification checkmark, its advertising transparency repository and access to platform data for eligible researchers.
The U.S. intervention adds a government-to-government dimension to a case already being closely watched by technology companies and regulators. The dispute comes amid wider disagreements between Washington and Brussels over digital regulation and the treatment of American technology platforms in Europe.
The EU General Court will ultimately determine whether X’s challenge succeeds and whether the €120 million penalty remains in force. The outcome could have implications for future enforcement of the Digital Services Act against large online platforms operating across European markets.
