EU vows to defend 120 million euro X fine as US backs Musk in court

The European Commission says it will defend its 120 million euro fine on X after the US backed Elon Musk's court challenge. The clash sharpens Brussels-Washington tensions over the EU's digital rules and their reach over American tech firms.Stock photo used for illustrationBrussels,Sep 25, 2026 19:38 ISTThe European Commission said on Friday that it is ready to defend a 120 million euro (USD 137 million) fine against social media platform X after the US government backed Elon Musk's attempt to have the case dismissed in court.The fine, imposed late last year after a two-year investigation, was the first penalty under the European Union's Digital Services Act, which regulates online content. The case has added to tensions between Brussels and Washington over the EU's tech rules.The US Justice Department said on Thursday that it had filed an application supporting X's move to have the case annulled at the European Union's General Court. It was the second time in three months that the department had stepped in to support a company owned by Musk.In July, the Justice Department filed a motion to intervene in a civil rights lawsuit alleging that Musk's xAI was illegally running dozens of natural gas turbines to power a USD 20 billion AI data centre in Mississippi. In that case, the NAACP and other groups said xAI had failed to get a permit for its power plant, which is 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 Musk also appeared to ease their public row from last year, when Musk called Trump's tax breaks and spending cuts a "disgusting abomination". On Thursday evening, Musk attended a state dinner hosted by Trump in honour of Chinese leader Xi Jinping, along with other tech leaders.The EU fine against X followed regulators' finding that the platform's blue checkmarks broke the rules because they involved "deceptive design practices" and could expose users to scams and manipulation. The European Commission is the main enforcer of the 27-nation bloc's Digital Services Act, which requires tech companies to clean up their platforms or face heavy financial penalties. European Commission spokesperson Thomas Regnier said on Thursday that it is the EU's "sovereign right" to draft laws 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 rulebook has become a flashpoint with the Trump administration, with US officials criticising it as a form of online censorship. The Justice Department said the fine, if upheld, "may have significant implications" for US online platforms and other companies providing digital services in the EU. Assistant Attorney General Brett Shumate said the "European Commission inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction," adding, "We will not tolerate the European Commission engaging in regulatory overreach to try and control American engines of innovation and economic growth."When asked whether the Justice Department had informed the commission that it planned to back Musk, Regnier said, "We do not need to be informed about anything." He also said the commission did not expect the case to affect wider ties between Brussels and Washington, including talks to limit the impact of Trump administration tariffs. "From our perspective, nothing will change because of a DSA case," he said, as the commission prepared to defend the fine in court.With PTI Inputs- Ends