U.S. DOJ Intervenes in X-EU Legal Battle Over Digital Services Act

The U.S. Department of Justice has filed an application to join Elon Musk’s appeal against a €120 million fine imposed on X by the European Commission, as Ars Technica first reported. The penalty, issued in December 2025, marked the first fine under the European Union's Digital Services Act (DSA).

Brussels accused X of violating transparency regulations, failing to provide adequate data access, and utilizing a deceptive design for its blue-tick verification system. The EU is also currently investigating X regarding the integration of its AI chatbot, Grok, for users within the bloc.

Assistant Attorney General Brett Shumate stated that the European Commission attempted to inappropriately expand its regulatory authority over American companies that do not operate within its jurisdiction, describing the move as regulatory overreach against "American engines of innovation and economic growth." The DOJ further argued that the Commission improperly calculated the fine using the combined global annual revenue of other companies controlled by Musk, rather than X's specific earnings. Additionally, the DOJ claimed the DSA improperly extended legal scrutiny to Musk as a private individual.

Reporting from Ars Technica notes that the Trump administration has backed claims that the EU is unfairly targeting U.S. firms and infringing upon free speech principles. President Donald Trump has characterized such penalties as "overseas extortion" and a "form of taxation." Other administration figures, including Vice President JD Vance, have criticized the fine against X.

This conflict arrives as other U.S. tech giants face EU scrutiny; Apple is currently appealing a €500 million fine issued under the Digital Markets Act for anti-competitive behavior in its app store. Regarding X's corporate structure, the platform merged with Musk's xAI in March 2025 and was later acquired by SpaceX prior to a June public listing. SpaceX has declined to comment.