US seeks to join X appeal against 120 million euro European Union penalty

Legal intervention in Luxembourg

On 24 September 2026, the US Department of Justice filed an application with the General Court of the European Union in Luxembourg to join X's legal challenge against a 120 million euro ($136.51 million) fine. The action, prepared with assistance from the US Department of State, seeks to support billionaire Elon Musk in annulling the financial penalty. Under the Statute of the Court of Justice of the European Union, a state may intervene in proceedings if it establishes an interest in the case outcome. The Justice Department argued that the US holds a direct interest in ensuring European Commission decisions comply with international standards of territorial jurisdiction and do not prejudice American digital platforms that contribute to the domestic economy.

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

Origins of the Digital Services Act sanction

The European Commission penalized X in December 2025 following a two-year investigation under the Digital Services Act. European regulators determined that X deceived users by selling blue verification checkmarks without meaningfully verifying identity, while also maintaining an opaque ad repository and blocking independent researcher access to public data. Elon Musk and X appealed the sanction in February 2026, describing the regulatory investigation as superficial and the interpretation of the law as tortured. In July 2026, the Commission accepted a compliance plan submitted by X to resolve the data access requirements, giving the platform six months to complete implementation. X also renamed its subscription tier to Premium to address concerns regarding the verification badge.

Transatlantic dispute over digital regulation

The intervention follows repeated criticism from Washington concerning European digital market rules. US President Donald Trump previously described European regulatory penalties as overseas extortion and threatened tariffs on countries enforcing rules designed to harm American technology. Vice President JD Vance termed the Digital Services Act content moderation standards authoritarian censorship, while US Secretary of State Marco Rubio characterized the penalty against X as an attack on American tech platforms. The Justice Department reiterated that Washington will not tolerate foreign regulatory overreach aimed at controlling American commercial innovation.

“The European Commission's fine isn't just an attack on X, it's an attack on all American tech platforms and the American people by foreign governments.”

Brussels maintains legal stance

On 25 September 2026, the European Commission stated that it is prepared to defend the penalty before the General Court. Commission spokesperson Thomas Regnier dismissed assertions that the US legal filing would alter European digital enforcement, describing the antitrust case as separate from broader transatlantic cooperation. Regnier reaffirmed the European Union's sovereign authority to enforce its digital legislation objectively. In parallel, European regulators continue separate proceedings regarding X's content moderation practices and the generation of non-consensual explicit images by the Grok artificial intelligence assistant. The Luxembourg court will decide whether to grant the US government formal standing to intervene.

“We have a very solid case that we presented. We imposed the fine on X last December and the Commission is, of course, absolutely prepared to defend its position before the courts.”