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U.S. files to join Musk and X’s lawsuits against EU fine
The U.S. Department of Justice applied to the General Court of the Court of Justice of the European Union in Luxembourg to intervene in lawsuits filed by Elon Musk and X against the EU’s €120 million fine. Washington argued that the European Commission had expanded its regulatory authority over U.S.-based digital companies.
The U.S. government is seeking to join lawsuits filed by Elon Musk and X challenging the European Commission’s €120 million fine. The U.S. Department of Justice submitted its application to intervene on Thursday to the General Court of the Court of Justice of the European Union in Luxembourg.
The application seeks to intervene in the X Internet and X Holdings v. European Commission and Musk v. European Commission cases. Both lawsuits seek to annul the European Commission’s decision of December 5, 2025, which found infringements under the Digital Services Act.
U.S. argues that regulatory authority has been expanded
Brett Shumate of the U.S. Department of Justice’s Civil Division said the European Commission was seeking to expand its regulatory authority over American companies that are neither within its jurisdiction nor operating there. The department said this approach could also affect other U.S.-based digital companies operating in Europe.
The U.S. administration also objected to EU institutions treating Musk and other companies under his control as a single economic entity when assessing responsibility.
The General Court of the Court of Justice of the European Union will decide whether the United States can join the lawsuits. The rules governing the court’s proceedings allow states with an interest in the outcome of a case to intervene.
Three infringements cited by the Commission against X
The lawsuits were the first challenges brought before the General Court of the European Union against the European Commission’s application of the Digital Services Act. The Commission imposed the €120 million fine on X for violating three transparency obligations applicable to the platform.
The European Commission said X’s blue checkmark system had a misleading design because it allowed users to obtain verified status for a fee without their identities being meaningfully verified.
The institution also said X’s advertising database lacked sufficient information about advertisements and the people who paid for them. According to the Commission, this shortcoming made it more difficult to investigate fraud, coordinated influence campaigns and other potential risks.
The third infringement concerned access to publicly available data. The Commission said X’s terms and procedures created unnecessary obstacles for qualified researchers seeking to investigate systemic risks.
First non-compliance fine under the law
The €120 million penalty was the first fine for non-compliance imposed under the Digital Services Act, which began to apply generally in February 2024. The law gives the European Commission the authority to investigate very large online platforms and impose fines of up to 6 percent of a company’s global annual revenue in cases of infringement.
Companies can challenge the European Commission’s enforcement decisions before EU courts. The dispute emerged as Washington and Brussels faced broader tensions over EU regulations targeting numerous major technology companies headquartered in the United States.
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