EU won't repeal €120M fine imposed on X
What's the story
The European Union (EU) has said it will defend a €120 million ($137 million) fine imposed on social media platform X. The decision comes after the US government backed Elon Musk's legal attempt to have the case dismissed. The EU had fined X late last year for violating its digital regulations, a move that has caused tensions with Washington.
Legal backing
US Justice Department backs X's request
The US Justice Department has filed an application supporting X's request to have the case annulled at the European Union's General Court.
This is the second time in three months that the department has intervened on behalf of a Musk-owned company.
In July, it had intervened in a civil rights lawsuit accusing Musk's xAI of illegally operating natural gas turbines for a $20 billion AI data center in Mississippi.
Regulatory action
EU's fine on X was first under Digital Services Act
The EU's fine on X was the first under its Digital Services Act, which governs online content.
The penalty was imposed after regulators found that X's blue checkmarks violated rules due to "deceptive design practices" that could expose users to scams and manipulation.
European Commission spokesperson Thomas Regnier defended the legislation as the EU's "sovereign right" to draft laws aimed at protecting its citizens.
Court defense
Fine could have significant implications for US online platforms
Regnier said the European Commission is prepared to defend its position in court, emphasizing that it has a strong case with plenty of evidence.
He added that it doesn't expect this case will affect wider ties between Brussels and Washington.
The Justice Department warned that if upheld, the fine could have significant implications for US online platforms and other companies providing digital services in the EU.