US Steps Into Musk’s Fight Against EU Over €120m Fine

The United States has stepped into Elon Musk’s legal challenge against a 120 million euros fine imposed by the European Commission, arguing that the case raises wider questions about the reach of European regulations over American companies.

The US government filed an application to intervene before the General Court of the Court of Justice of the European Union in Luxembourg in two cases brought by X Internet and X Holdings, and by Musk, seeking to overturn the Commission’s December 5, 2025 decision.

The Commission found the companies liable for violations of the European Union’s Digital Services Act and imposed a joint and several fine of 120 million euros. The penalty was calculated using the worldwide annual turnover of the economic unit ultimately controlled by Musk or X Holdings.

The US Department of Justice said its intervention reflects concerns about how European regulators apply the bloc’s digital rules to US-headquartered companies and determine which entities and individuals can be held responsible.

“The European Commission inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction,” said Brett A. Shumate, Assistant Attorney General of the Justice Department’s Civil Division.

The US government said the case has implications for American companies operating in the digital-services sector and for US-EU relations, particularly over the extent to which European regulators can apply their rules to companies based outside the EU.

Under Article 40 of the Statute of the Court of Justice of the European Union, states and other legal or natural persons may seek to intervene in proceedings when they can demonstrate an interest in the outcome.

The Justice Department said the cases are the first challenges to an enforcement action under the Digital Services Act to reach the General Court.

Washington has raised concerns about the European Commission’s approach to identifying the provider of digital services and assigning liability under the DSA. It argues that the approach could conflict with established principles governing territorial jurisdiction and the legal separation between companies and their shareholders.

The US government also objects to the Commission’s decision involving Musk personally and other US companies under his ownership, arguing that those entities had no connection to the digital services at issue.

The dispute could have implications beyond Musk and X. The US government said a ruling upholding the Commission’s approach could affect other very large online platforms and digital-services companies operating in the EU, many of which have parent companies based in the United States.

Source: FSX Business News