The United States government is moving to intervene in Elon Musk's legal challenge against a €120 million (£105 million) fine imposed by the European Commission on X over its paid blue verification badges. According to the Department of Justice, the U.S. has filed a formal request to join proceedings before the EU's General Court, arguing that the Commission has overreached its regulatory authority over American companies.
In December 2025, the European Commission determined that X deceives users by permitting them to purchase blue verified check marks without meaningfully verifying the account holders' identities. The regulator's decision marked its first enforcement action under the Digital Services Act, establishing a precedent for how the law will be applied across the bloc. According to the DOJ filing, the Commission imposed the fine jointly and severally against X and Musk based on worldwide annual turnover.
US Assistant Attorney General Brett A. Shumate contended that the Commission had
inappropriately attemptedto extend its jurisdiction over American companies beyond its control. The DOJ's intervention request invokes a provision of the Statute of the Court of Justice of the EU permitting a state to participate in disputes if it can demonstrate an interest in the outcome. The United States argues it possesses such an interest in ensuring that any Commission ruling aligns with how territorial jurisdiction is typically understood under international law.
The filing also emphasizes that the US seeks to protect its digital services sector, which
contribute significantlyto the American economy, from potential adverse precedent. According to reporting on the September 24, 2026 intervention request, the DOJ named two specific General Court cases: X Internet and X Holdings v. Commission (case number T-114/26) and Musk v. Commission (case number T-121/26).
What violations did the Commission identify?
Beyond the blue tick issue, EU regulators accused X of multiple breaches of the Digital Services Act. The platform failed to provide adequate transparency regarding its advertising practices and denied researchers access to publicly available data, both violations the Commission considered serious enough to warrant substantial penalties.
Henna Virkkunen, the European Commission's executive vice-president for tech sovereignty, stated at the time the fine was issued that the regulator was
holding X responsible for undermining users' rights and evading accountability. She added that
deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU.
How have US officials responded?
American government figures have mounted a coordinated response to the Commission's enforcement action. US Secretary of State Marco Rubio characterized the fine as an assault on all American technology platforms, writing on X that
the European Commission's fine isn't just an attack on X, it's an attack on all American tech platforms and the American people by foreign governments. He concluded by stating
the days of censoring Americans online are over.
The Federal Communications Commission has similarly criticized the EU regulator, accusing it of targeting and censoring American firms. Musk reposted Rubio's remarks with his own endorsement, signaling alignment between the platform's owner and the Trump administration's position on the matter.
What is the Commission's position?
The European Commission has rejected accusations that it targets companies based on nationality. Officials maintain that the enforcement action reflects the bloc's commitment to protecting digital and democratic standards, positioning EU regulation as a global benchmark for online platform accountability.
The Commission's decision to pursue this case as its first formal enforcement under the Digital Services Act underscores the regulator's determination to establish clear precedent for how platforms must operate within EU borders. The agency has also initiated separate investigations into X, including an examination of its integrated AI assistant Grok over allegations that it was misused to generate sexualized images of real people.
What happens next?
The EU General Court must now decide whether to permit the United States to formally intervene in the proceedings. If approved, American government lawyers would participate in arguments before the court, potentially influencing how the case unfolds. The outcome of this dispute will have significant implications for how the Digital Services Act is enforced and whether American companies can successfully challenge EU regulatory decisions on jurisdictional grounds.
Key Facts:
- The European Commission issued the €120 million fine in December 2025 as its first enforcement action under the Digital Services Act
- X filed its own appeal at the EU General Court in February 2026 against the Commission's decision
- The US Department of Justice formally requested intervention on September 24, 2026, citing American economic interests in digital services
- The Commission identified three separate violations: deceptive blue tick practices, inadequate advertising transparency, and denial of researcher data access
- The General Court must approve the US intervention request before American officials can participate in the proceedings
