EU vows to defend its stand against X after the US backs a court
challenge from Elon Musk
[September 26, 2026] By
LORNE COOK and KELVIN CHAN
BRUSSELS (AP) — The European Union's executive arm said Friday it's
prepared to defend a 120 million euro ($137 million) fine against the
social media platform X after the U.S. government threw its support
behind a legal effort by Elon Musk this week to have the case dismissed.
The European Commission fined X late last year for breaches of the
bloc’s landmark digital regulations, stoking tensions with Washington.
The U.S. Justice Department said Thursday that it had filed an
application to support X's bid to have the case annulled at the European
Union's General Court. It was the second time in three months that the
Justice Department has intervened to defend a company owned by Musk.
In July, the Justice Department filed a motion to intervene in a civil
rights lawsuit that alleges Musk’s xAI is illegally running dozens of
natural gas turbines to power a $20 billion AI data center in
Mississippi.
In that case, the NAACP and other groups said xAI failed to get a permit
for its power plant — which is located 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 the world's richest businessman appeared to dial down a war of
words that stunned Washington and Wall Street alike last year after Musk
called Trump's tax breaks and spending cuts a “disgusting abomination.”
Musk on Thursday evening attended a state dinner held by Trump honoring
China’s leader Xi Jinping, along with other tech titans.
The EU fine against X, which followed a two-year investigation, was the
first penalty issued under the bloc's digital regulations governing
online content. Regulators said X’s blue checkmarks broke the rules
because they involved“deceptive design practices” and could expose users
to scams and manipulation.
European Commission spokesperson Thomas Regnier said Friday that it is
the EU’s “sovereign right” to draft legislation 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.”
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Elon Musk toasts first lady Melania Trump during a State Dinner with
President Donald Trump and China's President Xi Jinping in the East
Room at the White House, Thursday, Sept. 24, 2026, in Washington.
(AP Photo/Alex Brandon)
 The commission is the top enforcer
of the 27-nation EU's Digital Services Act, which requires tech
companies to clean up their online platforms under threat of hefty
financial penalties.
But the rulebook has become a flashpoint with the Trump
administration, and U.S. officials have criticized it as amounting
to online censorship.
The Justice Department warned that the fine, if upheld, “may have
significant implications” for U.S. online platforms and other
companies providing digital services in the EU.
Assistant Attorney General Brett Shumate of the Justice Department’s
Civil Division said in Thursday's statement that the "European
Commission inappropriately attempted to expand its regulatory
authority to reach American companies not present or operating
within its jurisdiction,”
“We will not tolerate the European Commission engaging in regulatory
overreach to try and control American engines of innovation and
economic growth,” he said.
When asked whether the Justice Department had informed the
commission that it intended to back Musk, Regnier said: “We do not
need to be informed about anything.”
He said the commission doesn't expect the case to hurt broader
relations between Brussels and Washington, notably in talks to
mitigate the damage of Trump administration tariffs.
“From our perspective, nothing will change because of a DSA case,”
he said.
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