US Government Moves to Join Legal Challenge Against EU Fine on X

The United States government has submitted a formal application to participate in the legal proceedings challenging a European Union fine imposed on the social media platform X. This action was taken in support of the platform's own lawsuit seeking the annulment of the regulatory penalty. The move signals a direct intervention by the US administration in the dispute over digital regulation.

Bloomberg reported that the Trump administration filed the participation request with the EU General Court. The US Department of Justice stated that its involvement is intended to ensure that the European Commission does not unfairly treat platforms headquartered in the United States. Officials argued that the Commission attempted to extend its regulatory authority to companies that do not exist or operate within its jurisdiction. The department specifically criticized the application of the Digital Services Act to Elon Musk personally, asserting that this violates the legal principle of separate corporate personality, which generally prevents holding shareholders liable for corporate actions.

The European Commission originally imposed the fine in December of the previous year, determining that X violated transparency obligations. The regulator found that the platform's paid verification badge misled users, that it failed to adequately support researchers' access to public data, and that its ad repository did not meet transparency requirements. The fine amount was set at 120000000 EUR. The Commission maintained that its regulations do not discriminate against specific countries and that it has the right to enforce its own rules.

US officials, including Vice President JD Vance and the US Ambassador to the EU, have previously argued that EU digital regulations target American big tech companies and hinder investment in Europe. The US Department of Justice warned that if the Commission's decision is upheld, it could have negative implications for US companies. Musk filed the initial lawsuit in February of this year, requesting the cancellation of the penalty. The revenue from Musk's other non-listed businesses, such as space and infrastructure ventures, was not included in the calculation of the fine.

Reported by ZDNet Korea.