US asks EU court to let it back Musk in X’s €120m appeal over digital rules

WASHINGTON, September 25 — The US Justice Department has asked the European Union’s General Court to allow it to support Elon Musk and X, the social media platform formerly known as Twitter, in their legal fight against a €120 million (US$136 million) fine imposed by Brussels. This fine was the first ever issued under the Digital Services Act (DSA), which came fully into effect in 2024.

The DSA imposes stricter rules on online platforms, demanding more efforts to combat illegal and harmful content, as well as increased transparency regarding the workings of their systems. Violations can lead to hefty fines, up to six percent of a company's global annual revenue. The US administration and the US tech sector have criticized the DSA as a form of censorship, a claim the EU firmly denies.

Assistant Attorney General Brett Shumate stated that the European Commission overstepped its regulatory authority by trying to control American companies beyond its jurisdiction. The commission penalized X for breaching transparency obligations, employing deceptive design in its paid blue checkmark system, and denying researchers access to public data.

X has filed an appeal against the fine, arguing that it violates due process rights. However, the company has also taken steps to rectify the issues. In July, the European Commission accepted X's plan to address the violations, which involves enhancing researchers' access to data, including advertising information, subject to an independent audit. X had already changed its blue checkmark labeling to "premium" instead of "verified."