The European Commission, according to Washington's position, overreached when it imposed the initial enforcement action under the Digital Services Act.
The US Justice Department has filed a request with the EU's General Court seeking permission to intervene alongside X and Elon Musk in their legal challenge against the €120 million penalty that Brussels levied on the social media platform. The filing was made public on Thursday.
The intervention applies to two separate proceedings pending before the Luxembourg-based court. One case was initiated by X Internet and X Holdings, while the other was brought by Musk as an individual.
Both proceedings target the Commission's ruling from 5 December 2025, which represented the inaugural penalty under the Digital Services Act (DSA). The Commission determined that X violated the law's transparency provisions by operating its paid blue checkmark system, maintaining its advertising database, and restricting researchers' ability to access publicly available information.
X submitted its appeal in February. The penalty applies to both X and Musk collectively, with the Commission calculating the amount based on the global revenue generated across all enterprises under Musk's control, according to the Justice Department.
The European Commission inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction
Brett Shumate, assistant attorney general heading the Justice Department's civil division
The department further contests the Commission's methodology for determining which entity qualifies as the provider of a digital service. According to Washington's argument, the enforcement action extended to Musk as a private individual and other business entities he controls that bear no connection to X.
The State Department participated in preparing the submission, as Article 40 of the court's statute permits a nation to participate in proceedings when it demonstrates a legitimate interest in the outcome.
The United States has contested the fine since its announcement. In December, the Office of the US Trade Representative indicated it would consider imposing tariffs or other trade measures targeting European digital service providers.
Subsequently, the State Department announced sanctions targeting five individuals, among them Thierry Breton, a former European Commission official.
The Commission has continued applying the DSA framework in subsequent enforcement actions. In May, it imposed a €200 million fine on the Chinese marketplace Temu for selling unsafe goods, marking the second enforcement action under the legislation.
The General Court must now assess whether to permit American participation in the proceedings. Following X's initial appeal, the Commission stated to AFP that it stands prepared to present its defense during the judicial proceedings.
Source: The Next Web
