# US Government Supports Elon Musk's Challenge to EU's €120M X Fine Legal battle escalates as US intervenes in EU's Digital Services Act enforcement against X. - **Source:** [BBC News](https://www.bbc.co.uk/news/technology) - **Published:** 2026-09-25 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/e9067599-a2ce-4184-8fb6-0634717302ec ## US legal intervention The US Department of Justice filed an application with the EU's General Court supporting X's appeal against the €120m fine. Assistant Attorney General Brett Shumate argues the European Commission overstepped its jurisdiction by regulating US companies. The intervention cites the Statute of the Court of Justice, allowing states to participate in cases affecting their interests. ## Core EU allegations The European Commission fined X in December 2025 for deceptive blue tick verification and lack of ad transparency. Regulators claim X violated the Digital Services Act by failing to verify account holders and restricting researcher access to public data. Executive VP Henna Virkkunen stated these practices undermine user rights and evade accountability in the EU digital space. ## Political dimensions The case has become politicized, with US Secretary Marco Rubio calling it an attack on American tech. Musk, who financially supported Republican campaigns, claims EU regulations hinder innovation. The EU denies targeting US firms, asserting it's upholding digital standards. This marks the first DSA non-compliance decision, setting a precedent for platform regulation. ## Jurisdictional arguments The DOJ contends the EU's decision must align with international law's territorial jurisdiction principles. It seeks to protect US digital services contributing significantly to the economy. The Commission maintains its right to regulate platforms serving EU users, regardless of headquarters location. Both sides prepare for a legal battle over regulatory boundaries. ## Broader investigations Beyond the verification dispute, the EU is investigating X's AI assistant Grok for generating sexualized images. This adds to multiple ongoing probes into the platform's practices. The Commission's spokesperson Thomas Regnier expressed confidence in their legal position regarding the DSA violations. These parallel cases could compound X's regulatory challenges in Europe. ## Industry implications The outcome may redefine how global platforms operate across jurisdictions. US intervention sets a precedent for government involvement in corporate regulatory disputes. The case tests the DSA's enforcement power against non-EU companies. A ruling favoring X could limit EU regulators' ability to penalize foreign tech firms, while an EU win would strengthen digital sovereignty. ## Verification system flaws The core issue involves X's paid verification system, which the EU claims deceives users by not properly authenticating identities. Unlike previous verification systems that confirmed notable status, the current model primarily indicates payment. Regulators argue this misleads users about account authenticity, potentially enabling impersonation and reducing platform trustworthiness. ## Strategic importance This case represents a critical test of transatlantic tech regulation. The US position reflects growing concerns about EU regulatory reach affecting American companies. For the EU, it's about enforcing digital standards uniformly. The court's decision will influence future cross-border tech regulation and may prompt legislative responses from both blocs. ## Sources covering this story - https://www.bbc.co.uk/news/articles/cq0m373ee0v0o?at_medium=RSS&at_campaign=rss — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._