US Backs X's Challenge to EU's 120 Million Euro Fine

The US Department of Justice has filed an application to intervene in X's lawsuit against a 120 million euro fine imposed by the European Commission in December 2025, marking an escalation in transatlantic tensions over digital regulation. The DOJ argues that the EU Commission has improperly expanded its regulatory authority to target American companies operating outside its jurisdiction, stating the fine could set a precedent affecting US tech platforms globally. Assistant Attorney General Brett Shumate said the US will not tolerate "regulatory overreach" aimed at controlling "American engines of innovation and economic growth."

The EU Commission fined X for violating the Digital Services Act, citing three breaches: deceptive design of the blue checkmark system that misled users about account verification status, insufficient transparency in advertising practices, and failure to provide researchers adequate access to platform data. The fine followed a two-year investigation and represents the first enforcement action under the EU's DSA framework. X filed suit in February 2026, contesting the investigation's sufficiency, the Commission's interpretation of the law, and alleging biased prosecution. The DOJ's intervention, approved after consultation with the State Department, suggests the Trump administration views the case as having broader implications for US technology companies operating in Europe.

Parallel to the legal dispute, X has submitted proposals addressing the EU's concerns, which the Commission accepted in July 2026 as "an important step in the right direction." The platform has publicly clarified that blue checkmarks now denote premium subscription status rather than account verification, and has committed to accommodating the EU on other points of criticism. However, the lawsuit seeking annulment of the original fine remains active. The case will be heard at the EU's General Court in Luxembourg.

The European Commission has signaled its intent to defend the fine vigorously. Commission Spokesman Thomas Regnier stated Friday that drafting legislation to protect EU citizens is a "sovereign right," and that the Commission applied its rules "objectively, transparently, and with a solid case." The Commission emphasized it has substantial evidence available and will allow the court to decide the matter. EU officials characterize the DSA as necessary for consumer protection, while the Trump administration and affected US companies have criticized it as censorship and regulatory overreach targeting American innovation.