The European Union’s executive branch stated on Friday that it is ready to contest a 120 million euro ($137 million) penalty imposed on the social media platform X after the U.S. government backed Elon Musk in an attempt to have the lawsuit dismissed this week.
The European Commission penalized X at the end of last year for violating the bloc's significant digital rules, escalating frictions with Washington.
The U.S. Justice Department announced that it had submitted a request to back X’s attempt to have the case overturned at the General Court of the European Union. This was the second occasion in three months that the Justice Department intervened to support a company owned by Musk.
In July, the Justice Department submitted a motion to participate in a civil rights lawsuit claiming that Musk’s xAI is unlawfully operating multiple natural gas turbines to supply power for a $20 billion AI data center in Mississippi.
In that situation, the NAACP and additional organizations claimed xAI did not obtain a permit for its power plant — situated close to residences, schools, and churches — posing health hazards for families in North Mississippi and nearby Memphis and breaching the federal Clean Air Act.
Trump and the wealthiest businessman worldwide seemed to ease a verbal conflict that shocked both Washington and Wall Street last year when Musk labeled Trump's tax reductions and spending cuts a “disgusting abomination.”
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Musk participated in a state dinner hosted by Trump in honor of China's leader Xi Jinping, along with several other tech giants.
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The penalty imposed by the EU on X, resulting from a two-year inquiry, marked the initial sanction enforced under the bloc’s digital laws concerning online content. Regulators stated that X’s blue checkmarks violated the rules due to their use of “deceptive design practices,” which could lead to user scams and manipulation.
European Commission representative Thomas Regnier stated on Friday that the EU possesses the “sovereign right” to create laws focused on safeguarding its citizens.
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“We are applying our laws in an objective, transparent manner and with a strong justification,” he informed the media. “We are prepared to uphold our stance in court.” We possess ample evidence, and it will be for the court to determine as it always does.”