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The European Union’s executive arm said Friday it’s prepared to defend a 120 million euro ($137 million US) 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 fine amount equates to $194 million Cdn.
The EU action followed a two-year investigation and 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.
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.
“We will not tolerate the European Commission engaging in regulatory overreach to try and control American engines of innovation and economic growth,” said Brett Shumate, assistant attorney general of the Justice Department’s Civil Division.
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.”
U.S. President Donald Trump lashed out at a possible Canada-EU trade alliance, threatening new tariffs if he finds it to be ‘a hostile act.’ Meanwhile, Democrats in Washington expressed sympathy for Canada and said trade talks should resume.
The commission is the top enforcer of the 27-nation EU’s Digital Services Act (DSA), which requires tech companies to clean up their online platforms under threat of hefty financial penalties.
The DSA imposes a set of strict requirements designed to keep internet users safe online, including making it easier to report counterfeit or unsafe goods or flag harmful or illegal content like hate speech as well as a ban on ads targeted at children.
But the rulebook has become a flashpoint with the Trump administration, and U.S. officials have criticized it as amounting to online censorship.
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,…
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