EU vows to defend its stand against X after the US backs a court challenge from Elon Musk
The European Union is prepared to defend a 120 million euro fine against X, a social media platform owned by Elon Musk, after the U.S. Justice Department backed X's legal challenge. Separately, the Justice Department also intervened in a civil rights lawsuit alleging that Musk's xAI is illegally operating a power plant for its $20 billion AI data center in Mississippi, violating the Clean Air Act and posing health risks.
The European Union's executive arm, the European Commission, announced its readiness to defend a 120 million euro fine (approximately $137 million) levied against the social media platform X, formerly Twitter. This declaration follows the U.S. Justice Department's recent filing to support X's legal bid to annul the fine at the EU's General Court, marking the second such intervention by the Justice Department on behalf of an Elon Musk-owned company within three months. The fine was imposed late last year due to X's alleged breaches of the EU's digital regulations, specifically regarding "deceptive design practices" with its blue checkmarks.
This legal dispute has heightened tensions between Brussels and Washington, with U.S. officials criticizing the EU's Digital Services Act as potential online censorship. Assistant Attorney General Brett Shumate of the Justice Department's Civil Division stated that the European Commission is attempting to overreach its regulatory authority to control American companies. The Commission, however, maintains its sovereign right to legislate to protect its citizens and is confident in its legal position.
Adding to the complexity, the Justice Department's previous intervention in July involved a civil rights lawsuit against Musk's AI company, xAI. This lawsuit, brought by the NAACP and other groups, alleges that xAI is illegally operating dozens of natural gas turbines to power a $20 billion AI data center in Mississippi. The suit claims xAI failed to secure necessary permits for its power plant, which is situated near residential areas, schools, and churches, thereby creating health hazards for communities in North Mississippi and nearby Memphis, and violating the federal Clean Air Act. The article also notes a recent easing of past public disagreements between Musk and former President Donald Trump.