US Justice Department files to join Elon Musk lawsuit against 120 million euro EU fine on X

Application to the General Court

The US Department of Justice submitted a formal application on 24 September 2026 to intervene at the General Court of the European Union in Luxembourg. The filing supports a pair of legal challenges brought by Elon Musk and his social media company X to annul a 120 million euro ($136.51 million) penalty issued by the European Commission. The financial penalty, imposed in December 2025, represents the first monetary sanction delivered under the European Union's Digital Services Act framework. Assistant Attorney General Brett Shumate, who leads the Justice Department's Civil Division, stated that European regulators exceeded their territorial authority by attempting to police American enterprises that lack substantial physical operations within the European Union.

The European Commission inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction.

Dispute over fine calculation and scope

European regulators penalized X following a two-year investigation, citing deceptive interface practices in its blue-tick verification system, non-transparent advertising records, and a failure to grant researchers access to platform data. Musk and X filed their initial lawsuits seeking to dismiss the decision at the General Court in February 2026. In its intervention filing, the Department of Justice contended that the European Commission improperly calculated the fine based on the combined global annual revenue of separate commercial entities controlled by Musk rather than the revenue X earned within European jurisdiction. The Justice Department also asserted that the European Commission had inappropriately directed regulatory scrutiny at Musk as a private individual and implicated unrelated American corporate holdings under his ownership.

We will not tolerate the European Commission engaging in regulatory over-reach to try and control American engines of innovation and economic growth.

Corporate restructuring and Grok investigation

The transatlantic legal battle follows structural realignments across Musk's technology companies. In March 2025, X merged with Musk's artificial intelligence venture xAI, and the consolidated entity was later acquired by rocket manufacturer SpaceX prior to SpaceX's public listing in June 2026. Beyond the 120 million euro fine, European authorities initiated another formal inquiry in January 2026 examining X's artificial intelligence chatbot, Grok, after the tool generated non-consensual sexually explicit imagery. European officials have also maintained ongoing scrutiny over content moderation on X, where researchers and civil rights advocates reported increases in hate speech and misinformation following Musk's acquisition of the platform in 2022.

Transatlantic political friction

The Justice Department's court application directly aligns the administration of President Donald Trump with Musk ahead of the US midterm elections in November 2026. Musk is one of the primary financial donors backing Trump and Republican congressional candidates. Trump, alongside Vice President JD Vance, has repeatedly criticized the Digital Services Act, arguing that European regulatory regimes target American firms and restrict online speech. The European Commission denied targeting specific nationalities, asserting that the Digital Services Act applies equally to all digital platforms operating in the European single market to maintain democratic and safety standards. The General Court in Luxembourg will decide whether to grant the US government formal status in the ongoing proceedings.