On September 24, 2026, the U.S. Department of Justice filed an application with the EU General Court in Luxembourg to intervene in the case brought by X Corp. and Elon Musk. At stake is the first fine imposed under the Digital Services Act (DSA), which the European Commission handed down on December 5, 2025, for €120 million. This is not friendly support through an amicus brief but a request to intervene under Article 40 of the Statute of the Court of Justice, meaning the United States wants to become a party to the case.
The breakdown of the European Commission's €120 million Digital Services Act fine against X. Source: European Commission, decision of December 5, 2025.
X and Musk appealed in February 2026 (cases T-114/26 and T-121/26). The Justice Department has now moved to join those same cases. Assistant Attorney General Brett Shumate said the Commission "inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction." The department coordinated the step with the State Department, and Secretary of State Marco Rubio called the fine "an attack on all American tech platforms."
Largest EU fines against U.S. technology companies, EUR millions. Source: European Commission, 2021-2026.
For markets, the number matters less than the precedent. If the EU General Court lets Washington intervene, it opens a political channel of pressure on European regulation. If the court refuses, the DSA stays an internal Brussels tool and companies keep paying and litigating alone. For now, the advantage belongs to whoever turned a technical fine into a question of sovereignty first.
ℹ INFO
The Justice Department calls this the first challenge to DSA enforcement to reach the EU General Court. The dispute is not really about the money but about principle: can Brussels pull American companies into its jurisdiction?
What the fine is actually for
The Commission's complaints cover three areas, and in money they break down as follows:- €45 million - paid verification and the "blue checkmarks": the Commission says X does not meaningfully verify who is behind an account and misleads users
- €35 million - lack of advertising transparency
- €40 million - failure to give researchers access to data
The breakdown of the European Commission's €120 million Digital Services Act fine against X. Source: European Commission, decision of December 5, 2025.
X and Musk appealed in February 2026 (cases T-114/26 and T-121/26). The Justice Department has now moved to join those same cases. Assistant Attorney General Brett Shumate said the Commission "inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction." The department coordinated the step with the State Department, and Secretary of State Marco Rubio called the fine "an attack on all American tech platforms."
Brussels pushes back
Commission spokesman Thomas Regnier told a briefing on September 25 that the EU is "ready to defend" its position and has a "solid case." He stressed that regulating to protect EU citizens is a sovereign right and that "from our perspective, nothing will change because of a DSA case."
⚠ IMPORTANT
The claim that the European Commission earns billions a year by fining American companies is imprecise. Fines are not Commission income: they flow into the EU budget and reduce member states' contributions. Nor are they a steady annual stream, but occasional large decisions, some of which are appealed and held in escrow.
The bigger picture
Set against earlier decisions, the €120 million against X looks modest. Google was fined €2.95 billion in September 2025 over ad-tech, and Apple €1.84 billion in March 2024 over music streaming. In April 2025 the Commission applied the DMA for the first time: €500 million for Apple and €200 million for Meta.Largest EU fines against U.S. technology companies, EUR millions. Source: European Commission, 2021-2026.
For markets, the number matters less than the precedent. If the EU General Court lets Washington intervene, it opens a political channel of pressure on European regulation. If the court refuses, the DSA stays an internal Brussels tool and companies keep paying and litigating alone. For now, the advantage belongs to whoever turned a technical fine into a question of sovereignty first.