Azernews.Az

by Alimat Aliyeva

The US government has asked the EU’s General Court to allow it to intervene in Elon Musk and X’s legal challenge against a €120 million fine imposed by the European Commission.

The European Commission fined X in December 2025 for violating transparency requirements under the Digital Services Act (DSA). The regulator cited the platform’s blue verification badge system, a lack of transparency in its advertising repository and restrictions on researchers’ access to public data.

The US Department of Justice filed an application supporting X and Musk’s efforts to overturn the decision. Assistant Attorney General Brett A. Shumate said the Commission had “inappropriately attempted” to extend its regulatory authority to American companies beyond its jurisdiction. The US government argues that the case could have broader implications for US-based digital companies operating in Europe.

The European Commission, meanwhile, has defended its decision, saying the fine was based on violations affecting users in the EU. The €120 million penalty was the Commission’s first non-compliance decision under the DSA.

The dispute comes amid broader tensions over how far European digital regulations can reach companies headquartered outside the EU. In July 2026, the Commission accepted an action plan from X aimed at improving its advertising database and providing researchers with better access to public data.

The US intervention could therefore turn the case into a broader legal test over the territorial reach of EU digital regulations and their impact on major American technology companies.