BREAKING: X, the social media platform owned by Elon Musk, has deactivated the European Commission’s ad account just days after receiving a record €120 million fine under the Digital Services Act (DSA). This unprecedented penalty, announced last week, marks X as the first company to face a DSA fine for failing to meet transparency obligations.
The fine is the result of a comprehensive investigation launched in 2023, focusing on X’s handling of account verification, advertising transparency, and access to public data for researchers. The European Commission stated that X’s “blue checkmark” feature, which allows users to pay for verification, misleads users about account authenticity. The Commission also highlighted that X did not comply with DSA requirements for providing researchers access to its public data.
In an urgent twist, X has now terminated the Commission’s ad account, claiming misuse of its platform. X’s head of product, Nikita Bier, accused the Commission of exploiting an ad composer feature to post misleading links that misrepresent content as videos, artificially inflating reach. Bier stated, “Your ad account has been terminated,” emphasizing that the exploit had “never been abused like this.”
The European Commission responded, asserting that they utilize social media tools in good faith. A spokesperson stated, “We expect these tools to be fully in line with the platforms’ own terms and conditions, as well as with our legislative framework.” Despite the tension, the Commission had already suspended paid advertising on X in October 2023 due to ongoing compliance issues.
Now, X faces a critical window of 60 to 90 days to outline corrective actions to resolve its DSA violations. Earlier this year, reports indicated that the EU was considering imposing fines exceeding $1 billion for continued breaches.
Additionally, Ireland’s Coimisiún na Meán has initiated its own investigation into whether X allows users to appeal content moderation decisions effectively. This further complicates X’s regulatory challenges in the European market.
As the situation unfolds, the implications for both X and the European regulatory landscape are significant. Users and stakeholders are watching closely to see if X can navigate this turbulent period and restore its standing under EU regulations.
Stay tuned for updates on this developing story.
