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EU to defend €120 million fine on X after U.S. backs Elon Musk’s court challenge

Brussels says it will defend the €120 million penalty imposed under the Digital Services Act after the U.S. Department of Justice intervened in Elon Musk’s challenge.

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EU to defend €120 million fine on X after U.S. backs Elon Musk’s court challenge

The European Commission said on Friday, September 25, 2026, that it will defend a €120 million (US$137 million) fine imposed on the social media platform X after the U.S. Department of Justice filed to support Elon Musk’s bid to have the case annulled before the General Court of the European Union.

Background and Brussels' stance

Commission spokesperson Thomas Renier told reporters that it is the EU’s “sovereign right” to adopt laws protecting its citizens and that the Commission enforces its rules “objectively, transparently and on the basis of strong arguments.” He added: “We are ready to defend our position in court. We have a lot of evidence, and the court, as always, will be the one to decide.”

The sanction was imposed after a two‑year investigation and was the first penalty levied under the European Union’s Digital Services Act, the bloc’s sweeping rules that require online platforms to police content or face heavy fines. Regulators found that X’s blue verification badges involved “deceptive design practices” that could expose users to scams and manipulation.

The timing of the U.S. intervention has heightened tensions between Brussels and Washington. On Thursday the U.S. Department of Justice said it had filed a request to back X’s attempt to annul the fine — the second time in three months the department has intervened in litigation to defend a Musk company. In July the Justice Department sought to intervene in a civil‑rights case alleging that Musk’s xAI operated dozens of natural‑gas turbines to power a $20 billion AI data center in Mississippi without proper permits, a project NAACP and other groups said posed health risks to nearby communities.

Assistant Attorney General Brett Shumate of the Department’s Civil Division argued in his filing that “the European Commission improperly attempted to expand its regulatory authority to cover American companies that are not present and do not operate within its jurisdiction.” He added: “We will not tolerate the European Commission overstepping its regulatory authority in an effort to control American drivers of innovation and economic growth.” The Justice Department also warned that a confirmed fine could have “significant consequences” for U.S. online platforms and other digital service providers operating in the EU.

Renier said the Commission had not been notified in advance of the U.S. move: “We do not need to be informed about anything.” He said Brussels did not expect the case to damage broader relations with Washington, including talks to ease tariffs introduced by the U.S. administration. “From our perspective, nothing will change because of the case related to the Digital Services Act,” he said.

Photo: press material from the event

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