Trump administration takes Musk’s side in fight over EU tech rules

The Trump administration has taken a stance in support of Elon Musk and his company, X, in their legal challenge against a €120 million fine imposed by the European Union. The fine was issued under the EU's Digital Services Act (DSA) for breaching online transparency rules. The U.S. government filed an application to back Musk's efforts to annul the fine, which former President Trump has characterized as “overseas extortion” (Wired). The European Union has stated its intention to pursue the fine despite the U.S. backing Musk's court challenge. The fine was levied in 2025, with the EU accusing X of deceiving users by selling blue verification ticks without adequately verifying the accounts (France24, BBC). The EU's position is that the platform's practices violate the transparency requirements set forth in the DSA. The U.S. Justice Department's support for Musk's legal efforts marks a significant intervention in a transatlantic regulatory dispute. The backing from the U.S. government highlights the ongoing tensions between American tech companies and European regulatory frameworks, particularly concerning digital services and user transparency (Wired, France24). The outcome of this legal battle could have implications for how tech companies operate within the EU and how they are regulated by European authorities.