Key facts
- The Trump administration, through the DOJ, has criticized the EU's Digital Services Act (DSA) regarding penalties against X.
- The DOJ argued the EU improperly extended legal scrutiny to Elon Musk as a private individual.
- The DOJ stated the EU Commission inappropriately calculated X's fine based on the global annual revenue of other Musk-controlled companies.
- X was merged with Musk's AI company xAI in March 2025 and acquired by SpaceX ahead of its public listing in June.
- President Trump has criticized EU penalties as 'overseas extortion' and a 'form of taxation'.
The Trump administration has publicly supported Elon Musk in his dispute with the European Union over the Digital Services Act (DSA). The US Department of Justice (DOJ) stated that the EU's approach to fining X, Musk's social media platform, was improper.
Senior administration figures, including US Vice President JD Vance, have criticized the EU's actions. The DOJ argued that the DSA improperly extended legal scrutiny to Musk as a private individual and implicated unrelated American corporate entities under his ownership. Furthermore, the DOJ asserted that the European Commission inappropriately calculated X's fine based on the combined global annual revenue of other companies controlled by Musk, rather than the revenue X generated within the EU's jurisdiction.
In March 2025, X was merged with Musk's artificial intelligence company xAI, and subsequently acquired by his rocket maker SpaceX ahead of its public listing in June this year. SpaceX declined to comment on the matter.
Separately, the EU is conducting other investigations into X for potential breaches of the DSA, including assessing risks associated with integrating its AI chatbot Grok for EU users. Apple is also appealing a €500 million fine imposed under the EU's related Digital Markets Act concerning anti-competitive practices in its app store.
President Trump has also voiced strong opposition to the EU's penalties, describing them as 'overseas extortion' and a 'form of taxation.' This stance echoes his previous intervention during his first administration when he attempted to influence Apple's challenge against a €13 billion Irish tax bill.