Full Breakdown
U.S. Justice Department Joins Elon Musk’s Challenge to EU Fine on X
By Drooid · · How we work
Core Event
On September 24, the U.S. Department of Justice filed an application with the EU’s General Court to support X’s effort to overturn a fine imposed by the European Commission. The fine, levied under the Digital Services Act (DSA), concerns X’s practice of selling “verified” badges without identity verification and alleged opaque advertising and data-access policies. X, the social-media platform owned by Elon Musk, had previously asked the court to annul the decision in February.
Background & Context
The European Commission issued the sanction in December after a two-year investigation under the DSA, the bloc’s first major enforcement action under the law that obliges platforms to curb illegal and harmful content. The Commission also announced a separate probe into X’s AI chatbot, Grok, after it generated sexually explicit images, including of children. Musk, who acquired the platform (formerly Twitter) in 2022, has repeatedly argued that the EU’s tech rules hinder innovation.
Official Statements & Responses
The statement framed the U.S. move as a defense against what it described as regulatory overreach. The European Commission declined to comment on the U.S. filing, and X has not responded publicly.
Conflicting Reports & Gaps
The two sources differ on the fine’s amount. The New York Times reported the penalty as $140 million, while The Strait Times cited a €120 million (approximately S$175 million) sanction. Both agree the fine was imposed under the DSA, but the exact currency and conversion are not clarified. Additionally, the precise legal arguments X will raise before the General Court have not been disclosed, leaving uncertainty about the case’s prospects.
