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X Blocks EU Commission Ads Following €120 Million Fine

▼ Summary

– The EU fined X €120 million for violating the Digital Services Act, marking the first penalty issued under this law.
– Elon Musk responded to the fine by posting “Bullshit” on X, while the company’s head of product accused the European Commission of deceptive posting practices.
– X’s product head claimed the Commission used an ad-like post format to artificially boost the announcement’s reach, despite the account being inactive since 2021.
– In retaliation, X shut down the European Commission’s ad account, though this action is unlikely to provide significant leverage for the company.
– X must still pay the fine, provide a plan to address deceptive verified checkmarks within 60 days, or face further penalties.

The European Commission has imposed a €120 million fine on X for breaching the Digital Services Act, marking the first major penalty under the new regulatory framework. In a swift and contentious response, the social media platform has blocked the Commission’s advertising account, escalating a dispute over the methods used to publicize the enforcement action.

Elon Musk, the platform’s owner, reacted to the fine announcement with a single-word post on X: “Bullshit.” The situation intensified when X’s head of product, Nikita Bier, accused the European Commission of manipulating the platform’s systems. Bier stated that the Commission, which had not used its advertising account since 2021, employed a post format specifically designed for paid promotions when announcing the penalty. He alleged this tactic was used to deceive users into thinking the post was a video and to artificially amplify its reach, noting that the post did indeed contain a video.

This retaliatory move to suspend the Commission’s ad account is seen as largely symbolic. Given the account’s reported inactivity, the action provides X with little practical leverage. The company remains obligated to pay the substantial fine while it considers an appeal. Furthermore, X faces a strict 60-day deadline to submit a detailed plan addressing the “deceptive” use of verified checkmarks on its platform, a core issue cited by regulators. Failure to comply could result in additional financial penalties.

The European Commission has been contacted for a statement regarding the advertising account suspension. This development highlights the increasingly adversarial relationship between major online platforms and European Union regulators tasked with enforcing new digital governance laws.

(Source: The Verge)

Topics

eu fine 95% european commission 90% digital services act 85% regulatory violation 80% ad account suspension 80% regulatory enforcement 75% elon musk response 75% platform accountability 70% x product head 70% online platform governance 70%