The US Department of Justice has stepped in to back X and Elon Musk in their challenge to a 120 million euro penalty imposed by the European Commission for alleged breaches of the Digital Services Act. The Commission found X guilty of "deceptive design" over its paid blue-check verification, maintaining an opaque ad repository, and restricting researcher access to public data including bans on scraping. Those findings led to two cases - X Internet and X Holdings v Commission, and Musk v Commission - now the first DSA enforcement matters to reach the EU General Court. X offered compliance remedies in March 2026, which the Commission accepted in July 2026 even as the legal challenge proceeded.
The DoJ’s filing, allowed under the court’s third-party intervention rules, argues Brussels exceeded its jurisdiction by attempting to regulate US companies not operating within the EU and by treating X and Musk as a single economic unit - effectively piercing the corporate veil and using worldwide turnover to calculate the fine. The US warns against regulatory overreach that targets American innovation and objects to the Commission pursuing Musk personally and other unrelated holdings. Supporters of the DSA counter that the dispute concerns platform design and data-access obligations rather than censorship; the outcome will be a key test of how far EU digital regulations can reach foreign firms.
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