Elon Musk’s social media platform X has filed a legal challenge against a €120 million fine imposed by the European Commission for breaching European Union technology rules.
The penalty, issued in December, was the first handed down under the EU’s Digital Services Act and marked a significant escalation in tensions between Brussels and Washington over the bloc’s regulation of large online platforms.
According to court records, three cases were lodged on 16 February at the Court of Justice of the European Union. One filing was submitted by X Internet Unlimited Company and X Holdings, another by xAI Holdings, and a third appears to have been brought by Musk personally. The Commission’s decision was addressed to all of these entities, according to a version of the ruling subpoenaed and published by a U.S. congressional committee.
The Commission said the fine related to breaches of transparency obligations and the allegedly deceptive design of X’s blue checkmark verification system.
In a statement posted on the platform on Friday, X’s Global Government Affairs team criticised the decision, saying: “This EU decision resulted from an incomplete and superficial investigation, grave procedural errors, a tortured interpretation of the obligations under the DSA, and systematic breaches of rights of defense and basic due-process requirements suggesting prosecutorial bias.”
The company described the case as a pivotal test of the EU’s enforcement powers under the 2022 regulation, adding: “This landmark case is the first judicial challenge to a DSA fine and could set important precedents for enforcement, penalty calculations, and fundamental rights protections under the 2022 regulation.”
The case represents the first judicial challenge to a fine issued under the Digital Services Act and is expected to shape how the law is applied, including how penalties are calculated and how procedural safeguards are interpreted.
The development was first reported by MLex.
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