US Moves to Join Musk and X Challenge to EU Digital Services Fine

The Justice Department wants to intervene in two EU General Court cases brought by X Corp. and Elon Musk, which seek to annul a December 2025 decision that fined X €120 million.

Sep 25, 2026
•
5 min read
Technobezz
US Moves to Join Musk and X Challenge to EU Digital Services Fine

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The United States has asked to intervene in two cases at the European Union's General Court in Luxembourg, where X Corp. and Elon Musk are seeking to annul a European Commission decision that found violations of the Digital Services Act and imposed a fine. The Justice Department announced the application on Sept. 24, 2026.

The cases are X Internet and X Holdings v. Commission, Case No. T-114/26, and Musk v. Commission, Case No. T-121/26. The challenged decision is dated Dec. 5, 2025, and it imposed a fine of €120 million, jointly and severally.

The US is backing the applications to annul the Commission's decision. It cites Article 40 of the Statute of the Court of Justice, which allows a state to intervene when it has an interest in the outcome of a case. The Justice Department says it coordinated with the State Department on the filing.

According to the government, its interest lies in keeping territorial jurisdiction consistent and in how the Commission defines a "provider" for purposes of liability under the Digital Services Act. The US also raises concerns about the corporate veil principle.

The government argues the Commission's scrutiny reached Musk as a private individual and pulled in unrelated American entities under his ownership that had nothing to do with the digital services at issue. It warns that a ruling could affect very large online platforms, many of which are domiciled at the parent level in the United States.

Assistant Attorney General Brett A. Shumate said the Commission "inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction". He added: "We will not tolerate the European Commission engaging in regulatory overreach to try and control American engines of innovation and economic growth."

The announcement gives no hearing or ruling date, and carries no comment from the European Commission, X Corp. or Musk.

The Justice Department says no earlier case challenging DSA enforcement has reached the General Court.

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