The US Department of Justice has officially requested to intervene in two legal cases at the EU General Court in Luxembourg. These proceedings involve Elon Musk and X, who are challenging a penalty imposed by the European Commission for violations of the Digital Services Act.
In December 2025, the European Commission issued a fine of €120 million to X. Regulators cited failures in transparency, restricted data access, and deceptive design of the verified account system. The DOJ argues that the Commission incorrectly calculated this penalty by using the global revenue of other companies owned by Musk rather than X's specific earnings.
The DOJ further claims that the European Commission is overstepping its regulatory authority by targeting American companies that lack a presence in its jurisdiction. Officials also stated that the DSA improperly extended legal scrutiny to Musk as an individual and to unrelated corporate entities under his control.
The corporate structure of Musk's ventures has evolved significantly. In March 2025, X merged with the AI company xAI, which was later acquired by SpaceX ahead of its June 2026 public listing. Meanwhile, the EU is conducting separate investigations into X regarding the integration of the Grok AI chatbot.
This intervention aligns with the Trump administration's broader stance against EU tech regulations, which it labels as unfair targeting of American innovation. Other major US firms are also facing EU scrutiny, including Apple, which is currently appealing a €500 million fine related to anti-competitive practices in its app store.
