US Seeks to Support X in EU Court Appeal Over €120M Fine

X argued in its appeal that the fine violated its due-process rights.
The DSA took full effect in 2024 and requires platforms to do more to tackle illegal and harmful content, as well as to be transparent about how their systems work.
Assistant Attorney General Brett Shumate framed Washington’s objection as a question of jurisdiction, arguing that the Commission overstepped by applying its rules to American companies and their operations.
X’s European headquarters are in Ireland.
The United States has asked the EU's General Court to support Elon Musk and X in fighting a €120 million fine under the Digital Services Act — the law's first penalty. BBC reports that Washington is challenging the European Commission's case, which accused X of deceiving users by selling blue verification badges without proper identity checks and failing to meet advertising transparency rules.
The Trump administration views the EU's digital rules as government overreach against American companies. Euractiv reports the US Justice Department framed its objection as a jurisdiction issue, arguing the Commission exceeded its authority by applying rules to American firms. X appealed the fine in February and has already begun addressing some violations through an independent audit.
The European Commission said X misled users in multiple ways. Yahoo reports the company sold blue verification badges to paying users without verifying their identity. The platform also failed to show advertisers how their ads reach audiences and blocked researchers from accessing platform data needed to study the service's impact.
These violations struck at the Digital Services Act's core goals. The DSA took full effect in 2024 and requires platforms to tackle illegal and harmful content more aggressively. It also demands transparency about how platforms' algorithms and recommendation systems work.
The US Justice Department's move marks an unusual intervention in EU enforcement. Assistant Attorney General Brett Shumate questioned whether the European Commission had the right to fine American companies for operating in Europe. Washington claims the agency applied its rules too broadly against US firms based outside EU borders.
This case highlights deep divisions between Washington and Brussels over how to govern social media. The Trump administration has portrayed EU digital rules as threats to free speech and innovation. The EU firmly rejects censorship claims, saying the DSA protects users from harmful content and ensures fair competition.
X's European headquarters are based in Ireland, adding complexity to the jurisdictional fight. The platform has already taken steps to comply with some DSA requirements. If X loses its appeal, the outcome could reshape how American tech companies operate across the Atlantic.
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