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Justice Department moves to intervene in EU court backing X Corp and Elon Musk against €120M fine

By LexCircuit Desk · · AI-drafted, human-reviewed

The United States Justice Department filed an application in the General Court of the European Union to intervene in lawsuits brought by X Corp and Elon Musk challenging a €120 million Digital Services Act fine. Assistant Attorney General Brett Shumate argued the European Commission exceeded its extraterritorial authority and improperly pierced corporate veils by attributing turnover across unrelated Musk-owned companies.

Filing (U.S. Department of Justice) → · ABC News, CBC News, MLex

Key points

  • The Justice Department intervened under Article 40 of the CJEU Statute, marking the first DSA enforcement challenge before the General Court.U.S. Department of Justice
  • The Commission calculated the €120 million penalty against the worldwide turnover of the single economic unit controlled by Elon Musk.U.S. Department of JusticeMLex
  • DOJ argued the Commission violated international law by piercing corporate veils to reach American companies lacking European operations.U.S. Department of JusticeCBC News
  • Commission spokesperson Thomas Regnier stated the EU has the sovereign right to protect citizens and will defend the penalty in court.ABC NewsCBC News
  • The penalty stemmed from a two-year investigation concluding X's blue checkmarks constituted deceptive design practices under DSA rules.ABC News

Sources4 articles across 4 outlets

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LitigationU.S.EUDigital Services ActGen. Ct.Data protectionLitigationTechnologyFor practitionersFor governanceFor vendors