US officials have backed Elon Musk's legal challenge to overturn a €120m fine imposed by the European Commission on X for deceptive use of blue tick badges.

In December 2025, the EU argued the platform was 'deceiving users' by allowing paid verification, despite not providing 'meaningful' checks. Musk, a vocal critic of EU tech regulation, says it 'inhibits progress.' The US has now stepped in, claiming a 'clear interest' in ensuring consistent application of EU law.

The fine also covers issues of transparency in advertising and access to public data, sparking a wider debate on digital sovereignty and regulation. EU regulators, like Henna Virkkunen, highlighted the importance of accountability, while US officials, including Secretary Marco Rubio, accused the Commission of 'censoring' American tech firms.

This move marks the EU's first official non-compliance decision under the Digital Services Act, a rulebook aimed at online platforms. However, it comes amid ongoing investigations, with concerns over X's AI assistant Grok, leading to a complex web of legal and ethical challenges.