The EU's European Commission said Friday it will defend a 120 million euro fine against X for breaching digital regulations, after the U.S. Justice Department filed support for Elon Musk's legal challenge. The fine, the first under the EU's Digital Services Act, penalized X's blue checkmarks as deceptive design practices; U.S. officials claim it represents regulatory overreach targeting American companies.
The US Department of Justice filed to intervene in an EU General Court case against Elon Musk and X, seeking to overturn a €120 million fine imposed under the Digital Services Act for breaches including deceptive verification claims and inadequate data access. The Trump administration argues the EU's regulatory actions constitute overreach targeting American tech companies and threatens US-EU relations.