US seeks to join Musk and X in challenge to €120m EU fine

The United States has asked to join Elon Musk and X’s legal challenge to a €120m European Commission fine, the US Justice Department announced on 24 September 2026. Washington is backing their attempt to overturn the penalty while disputing the reach of EU enforcement and its implications for Musk’s other businesses. [1]

The department said it had applied to intervene in two cases before the EU’s General Court in Luxembourg: one brought by X Internet and X Holdings, and another by Musk. Its announcement concerns a request to participate, not a court ruling admitting the US or cancelling the fine. [1]

The US objections centre on cross-border jurisdiction and the legal separation between companies and their owners. The department argues that the Commission extended legal scrutiny to Musk personally and implicated other American companies he owns which, in its view, have no connection to the digital services involved. Those are the US government’s arguments, rather than findings by the court. [1]

What the fine covers

The Commission announced the fine on 5 December 2025 under the Digital Services Act. It identified three transparency breaches: deceptive blue-checkmark design, insufficient transparency in X’s advertising repository and failure to give researchers access to public data. The penalty was therefore not solely about verification badges. [3]

On blue checkmarks, the Commission’s objection was not simply that X charged for them. It said users could buy verified status without meaningful checks on who was behind an account. The Commission said the law did not require user verification, but prohibited platforms from falsely presenting users as verified when no verification had taken place. [3]

Changes alongside the challenge

X has also pursued remedial measures. AFP reported on 25 September that the Commission had accepted a plan in July to widen researchers’ access to data, including advertising information, with changes subject to an independent audit. It also reported that X had relabelled its blue checkmarks as premium rather than verified. [6]

That acceptance came with reported reservations. Brussels Signal reported in July that the Board for Digital Services, which brings together national regulators, had judged the plan inadequate overall. According to the report, the Commission nevertheless accepted it after clarifying implementation requirements, with enhanced supervision and an external audit. [7]