Justice Department under Trump asks EU to scrap $137M US fine for Elon Musk's X

The European Commission fined X late last year for breaches of the bloc's landmark digital regulations, stoking tensions with Washington. The fine amount equates to $194 million Cdn.

The EU action followed a two-year investigation and was the first penalty issued under the bloc's digital regulations governing online content. Regulators said X's blue checkmarks broke the rules because they involved "deceptive design practices" and could expose users to scams and manipulation.

The U.S. Justice Department said Thursday that it had filed an application to support X's bid to have the case annulled at the European Union's General Court.

"We will not tolerate the European Commission engaging in regulatory overreach to try and control American engines of innovation and economic growth," said Brett Shumate, assistant attorney general of the Justice Department's Civil Division.