Business

US backs Elon Musk's bid to overturn €120m EU fine against X

BBC Business · 2026-09-25

AI SUMMARY

• What happened: The US government is supporting Elon Musk's legal challenge to overturn a €120 million fine imposed by the European Commission on his social media platform, X, for allegedly misleading users regarding its verification process. • Why it matters: This case highlights tensions between US tech companies and European regulatory frameworks, raising concerns about jurisdiction and the implications of EU regulations on American businesses. • What to watch next: Monitor the legal proceedings and potential outcomes of Musk's challenge, as they may influence future regulations for digital services in both the US and Europe.

**US Government Supports Elon Musk's Legal Challenge Against EU Fine on X**

The United States government is stepping in to support Elon Musk's legal efforts to overturn a €120 million (£105 million) fine imposed by the European Commission on his social media platform, X, formerly known as Twitter. The fine, announced in December 2025, stems from allegations that X misleads users by allowing individuals to pay for blue verified check marks without adequately verifying their identities.

The European Commission's ruling stated that the platform's verification process does not "meaningfully verify" the authenticity of account holders, leading to concerns about user deception. In addition to the verification issues, regulators criticized X for a lack of transparency in its advertising practices and for restricting researchers' access to public data.

On Thursday, US Assistant Attorney General Brett A. Shumate expressed the government’s view that the European Commission has overstepped its jurisdiction by targeting American companies like X. The Department of Justice (DOJ) has filed an application with the EU's General Court, seeking to join Musk's legal challenge. The DOJ argues that the US has a vested interest in ensuring that the Commission's decisions align with established principles of territorial jurisdiction under international law.

Shumate emphasized the importance of protecting US-based digital services that significantly contribute to the American economy. The DOJ's intervention highlights a broader concern about the implications of EU regulations on American tech companies, which have increasingly faced scrutiny from European authorities.

Musk, who has been vocal about his opposition to EU tech regulations, has previously stated that such regulations "inhibit progress" for companies. His political ties, particularly his financial support for Donald Trump and other Republican candidates, have also drawn attention to his stance on regulatory matters.

The fine against X represents the first official non-compliance decision made under the EU's Digital Services Act (DSA), which governs online platforms within the region. Henna Virkkunen, the EU's executive vice-president for tech sovereignty, stated that the Commission is committed to holding platforms accountable for undermining user rights and evading transparency.

In response to the fine, US Secretary of State Marco Rubio and the Federal Communications Commission (FCC) have criticized the European Commission, framing the fine as an attack on American tech firms and the rights of American citizens. Rubio's comments on X, which Musk endorsed, reflect a growing sentiment among some US officials that EU regulations may unfairly target American companies.

The European Commission has maintained that its actions are not directed at any specific nationality but are aimed at upholding digital and democratic standards within the EU. The Commission's stance is that protecting users from deceptive practices is essential for maintaining its role as a global benchmark in digital regulation.

In addition to the current legal challenge, the EU is conducting further investigations into X, including scrutiny of its integrated AI assistant, Grok, which has faced backlash for allegedly generating sexualized images of real individuals. This ongoing examination of X's practices underscores the EU's commitment to enforcing compliance with its regulatory frameworks.

As the legal proceedings unfold, the implications of the US government's involvement may set a precedent for future transatlantic regulatory disputes involving technology companies. The outcome of Musk's challenge could influence how digital services are regulated in both the US and Europe, particularly in relation to user verification and accountability.

The European Commission has yet to respond to the DOJ's application or provide further comments on the matter. As the situation develops, it remains to be seen how this legal battle will impact the relationship between US tech companies and European regulators.

Source: BBC Business
RELATED NEWS

More Stories

All News
Business

Africa's richest man, Ethiopia and Djibouti to build $660m fuel pipeline

• What happened: Nigerian billionaire Aliko Dangote, Ethiopia, and Djibouti have agreed to develop a $660 million petroleum pipeline and storage project, featur...

Business

Farmers down 240 million litres of milk after heat

• What happened: Extreme heat this summer resulted in dairy farmers in England and Wales delivering 240 million fewer litres of milk than expected, leading to s...

Business

NI's economic output rises, but businesses warn of rising costs

• What happened: Northern Ireland's economic output rose by 2.3% in the year to June, outpacing growth in the UK and Republic of Ireland, driven by increas...

Business

Scam hotel booking sent family to Wetherspoon pub

• What happened: A family fell victim to a phishing scam after booking a "luxury" London apartment, only to find the address was a Wetherspoon pub, le...

Business

X-planes: Are they needed in the new era of drones?

• What happened: NASA's X-59 aircraft, designed to reduce sonic booms, is currently being tested in the U.S. to assess public perception of its noise level...

Business

'We're all broke': Would you chase a friend for £5?

• What happened: A discussion among New Yorkers reveals varying thresholds for asking friends to repay small debts, with many feeling awkward about the process....