The United States government has formally asked the European Union’s General Court to allow it to participate in Elon Musk and X’s legal challenge against a €120 million ($136.5 million) EU fine. The move adds another layer to an ongoing dispute over the reach of European digital regulations and their impact on US-based technology companies.
The US Department of Justice filed its intervention request on September 24, supporting separate legal actions brought by X and Musk seeking to overturn the European Commission’s December 2025 decision.
US Challenges EU’s Regulatory Reach
The Justice Department argues that the European Commission went beyond its proper jurisdiction when applying the EU’s Digital Services Act (DSA) to American companies. Assistant Attorney General Brett Shumate said the United States has an interest in ensuring that European regulatory decisions respect established principles concerning territorial jurisdiction.
The US government also said the case could have wider consequences for major American digital companies operating in Europe. According to the Justice Department, the Commission’s approach could affect how liability is assigned to parent companies and individuals connected to online platforms.
The General Court will now determine whether the United States can intervene in the proceedings. Under EU court rules, a state can seek to participate in a case when it can establish an interest in its outcome.
Why X Was Fined €120 Million
The European Commission imposed the €120 million penalty in December 2025 following a lengthy investigation under the Digital Services Act. It was the first fine issued under the legislation.
The EU decision found violations involving X’s paid verification system, its advertising transparency requirements and access to publicly available platform data for researchers. The penalty was imposed jointly against X and entities connected to Musk.
The Digital Services Act requires major online platforms operating in the European Union to meet various transparency and accountability requirements, including measures concerning illegal content, advertising and access to certain platform information.
Musk and X have challenged the European Commission’s decision before the EU’s General Court. Musk separately filed his own case seeking to have the decision annulled.
Dispute Highlights Growing US-EU Tech Tensions
The intervention comes amid broader disagreements between Washington and Brussels over technology regulation. The Trump administration has criticized several European digital policies, while EU officials have maintained that the bloc’s rules apply to companies operating in its market regardless of nationality.
The European Commission has defended the Digital Services Act as part of its broader effort to improve transparency and accountability among large online platforms.
The court’s decision on whether to accept the US intervention request will determine whether American government lawyers can formally participate in the proceedings. The outcome could have implications beyond X, particularly for how European digital regulations are applied to US-based technology companies operating in the European market.
