US backs Elon Musk's challenge to €120M EU fine against X

by@BBCWorld

Summary

The US government is supporting Elon Musk's legal effort to overturn a €120 million fine imposed by the European Commission against X, previously known as Twitter, for allegedly misleading users regarding its blue verification check marks. The Commission, in its December 2025 ruling, stated that X deceives users because it does not "meaningfully verify" account identities, marking this fine as the first official non-compliance decision under the Digital Services Act. US Assistant Attorney General Brett A. Shumate argued that the EU is overstepping its authority by targeting American companies, a sentiment echoed by US Secretary of State Marco Rubio, who criticized the Commission's actions as detrimental to US digital services that significantly impact the economy.

Analysis

X: X is a social media platform that provides user verification through paid blue checkmarks. European regulators fined it under the Digital Services Act for issues including inadequate verification of accounts and lack of transparency on advertisements. The platform is contesting the decision with backing from the US government. Elon Musk: Elon Musk owns and leads the social media platform X. He has publicly opposed EU tech regulations, arguing they hinder innovation for companies. Musk has supported political efforts aligned with reducing regulatory burdens on US businesses. Marco Rubio: Marco Rubio is the US Secretary of State. He criticized the EU fine against X as an attack on American tech platforms and the broader interests of the American people. Rubio has argued that such actions represent foreign interference in online expression. US Government: The US Government represents national interests in international legal and regulatory matters involving American companies. Through its Department of Justice, it is intervening in proceedings before the Court of Justice of the EU to support challenges against foreign regulatory actions. This move aims to protect US digital services from what it views as overreach in territorial jurisdiction. Brett A. Shumate: Brett A. Shumate serves as US Assistant Attorney General. He stated that the European Commission inappropriately sought to expand its authority over American companies operating outside EU borders. His comments frame the fine as inconsistent with established principles of international law on jurisdiction. DSA Milestone: The fine represents the first official non-compliance decision issued by the European Commission under the Digital Services Act. Legal Intervention: The US government is invoking provisions in the Statute of the Court of Justice of the EU to join the dispute based on its interest in the outcome regarding territorial jurisdiction. Regulatory Criticism: US officials have accused the European Commission of targeting American companies and undermining digital services that contribute to the US economy.

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