US intervenes in Elon Musk’s legal challenge to EU fine against X - Financial Times

The United States Department of Justice has formally requested to join a legal challenge filed by Elon Musk’s social‑media platform X against a €120 million fine imposed by the European Union. The application was lodged with the EU’s General Court, where X is seeking to have the sanction annulled.

The fine, which amounts to roughly S$175 million, was levied in late 2025 after a two‑year investigation by EU tech regulators under the Digital Services Act (DSA). The regulators concluded that X had breached the DSA’s online content rules, marking the first sanction issued under the landmark legislation.

Assistant Attorney‑General Brett Shumate of the Justice Department’s civil division said the European Commission had “inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction.” The U.S. filing argues that the EU’s action exceeds its legal competence.

The European Commission responded that its laws are neutral with respect to nationality and are intended to protect digital and democratic standards across the bloc. It maintains that the DSA applies to any platform that offers services to EU users, regardless of the company’s location.

The DSA, which came into force in 2024, requires online platforms to take greater responsibility for illegal and harmful content, to provide transparency on algorithmic decisions, and to allow for independent audits. The EU has positioned the act as a means to ensure a level playing field for smaller competitors and to safeguard consumer choice.

The U.S. intervention reflects ongoing tensions between Washington and Brussels over technology regulation, with the American administration having previously criticised the EU’s approach as singling out U.S. firms. Both sides continue to argue that their respective regulatory frameworks are necessary to address the challenges posed by large digital platforms.