The European Union's executive arm said Friday it's prepared to defend a 120 million euro ($137 million) fine against the social media platform X after the U.S. government threw its support behind a legal effort by Elon Musk this week to have the case dismissed.
The European Commission fined X late last year for breaches of the bloc’s landmark digital regulations, stoking tensions with Washington.
The U.S. Justice Department said Thursday that it had filed an application to support X's bid to have the case annulled at the European Union's General Court. It was the second time in three months that the Justice Department has intervened to defend a company owned by Musk.
In July, the Justice Department filed a motion to intervene in a civil rights lawsuit that alleges Musk’s xAI is illegally running dozens of natural gas turbines to power a $20 billion AI data center in Mississippi.
In that case, the NAACP and other groups said xAI failed to get a permit for its power plant — which is located near homes, schools and churches — creating health risks for families in North Mississippi and nearby Memphis and violating the federal Clean Air Act.
Trump and the world's richest businessman appeared to dial down a war of words that stunned Washington and Wall Street alike last year after Musk called Trump's tax breaks and spending cuts a “disgusting abomination.”
Musk on Thursday evening attended a state dinner held by Trump honoring China’s leader Xi Jinping, along with other tech titans.
The EU fine against X, which followed a two-year investigation, was the first penalty issued under the bloc's digital regulations governing online content. Regulators said X’s blue checkmarks broke the rules because they involved“deceptive design practices” and could expose users to scams and manipulation.
European Commission spokesperson Thomas Regnier said Thursday that it is the EU’s “sovereign right” to draft legislation aimed at protecting its citizens.
“We are enforcing our legislation objectively, transparently and with a solid case,” he told reporters. “We are ready to defend our position in court. We have a lot of evidence at our disposal, and it will be for the court to decide as always.”
The commission is the top enforcer of the 27-nation EU's Digital Services Act, which requires tech companies to clean up their online platforms under threat of hefty financial penalties.
But the rulebook has become a flashpoint with the Trump administration, and U.S. officials have criticized it as amounting to online censorship.
The Justice Department warned that the fine, if upheld, “may have significant implications” for U.S. online platforms and other companies providing digital services in the EU.
Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division said in Thursday's statement that the "European Commission inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction,”
“We will not tolerate the European Commission engaging in regulatory overreach to try and control American engines of innovation and economic growth,” he said.
When asked whether the Justice Department had informed the commission that it intended to back Musk, Regnier said: “We do not need to be informed about anything.”
He said the commission doesn't expect the case to hurt broader relations between Brussels and Washington, notably in talks to mitigate the damage of Trump administration tariffs.
“From our perspective, nothing will change because of a DSA case,” he said.
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AP Business Writer Kelvin Chan contributed to this report from London.
