U.S. To Help Musk Fight EU $137 Million Fine Over X’s Violation Of Digital Services Act

The U.S. Justice Department is helping Elon Musk fight a fine the European Union General Court imposed on his social media company, X.

The EU announced a $137 million fine against X for violating the Digital Services Act in December 2025. The fine specifically focused on the company's use of a blue checkmark to signify a verified user, saying it was a deceptive design practice.

"On X, anyone can pay to obtain the 'verified' status without the company meaningfully verifying who is behind the account, making it difficult for users to judge the authenticity of accounts and content they engage with," the court stated. "This deception exposes users to scams, including impersonation frauds, as well as other forms of manipulation by malicious actors."

The court also ruled that X's ad repository lacked transparency and that the social media network did not provide researchers with access to the platform's public data.

At the time of the fine, U.S. Secretary of State Marco Rubio said the EU was unfairly attacking American companies and free speech.

Now, the Justice Department is officially intervening in the matter. In the filing, the U.S. argues that the EU overstepped its regulatory authority in issuing the fine.

"The European Commission inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction," said Assistant Attorney General Brett A. Shumate of the Justice Department's Civil Division. "We will not tolerate the European Commission engaging in regulatory overreach to try and control American engines of innovation and economic growth."

According to the filing, the U.S. believes that the EU's actions could have implications far beyond X and Musk.

"If the approach in the European Commission Decision is upheld, this may have significant implications for 'very large online platforms' and other similar entities operating in the digital services sector within the EU, many of which are domiciled (at parent level) within the United States," the Justice Department stated. "The United States looks forward to the opportunity to address these concerns and issues in detail before the General Court."