X (formerly Twitter) Deactivates EU Ad Account After €120M Fine

X and the European Commission Clash Over DSA Fine and Advertising Practices

Nikita Bier, X’s Head of Product, publicly responded to a €120 million (approximately $140 million) fine levied by the European Commission this past weekend.

The fine represents the first penalty issued under the European Union’s Digital Services Act (DSA). The commission characterized X’s blue checkmark system as “deceptive,” asserting that the paid verification process increases user vulnerability to both impersonation and fraudulent schemes.

Concerns Regarding Transparency and Accessibility

Furthermore, the commission stated that X’s advertising repository did not fulfill the DSA’s stipulations concerning transparency and accessibility.

The commission has stipulated a 60-day timeframe for X to address concerns related to the blue checkmark system. A 90-day period has been granted to rectify the advertising transparency violations. Failure to comply could result in further penalties.

Elon Musk’s Reaction and Subsequent Actions

Following the announcement of the fine, Elon Musk, owner of X, dismissed it as “bullshit” and also expressed, “How long before the EU is gone? AbolishTheEU”.

Subsequently, X appears to have taken action against the commission’s account on the platform. The company maintains this action is not a response to the fine itself, but rather to the commission’s utilization of X’s advertising system.

X’s Accusations Against the European Commission

Quoting the commission’s post announcing the fine, X’s Bier alleged that the EC accessed a “dormant ad account” to exploit a flaw within their Ad Composer.

According to Bier, this exploitation was used to present a link disguised as a video, artificially inflating its reach and potentially deceiving users.

“X believes everyone should have an equal voice on our platform,” Bier stated. “However, it appears you believe that the rules should not apply to your account.”

As a consequence, the commission’s ad account has been “terminated.” Bier also noted that the identified exploit “has never been abused like this” and has since been resolved.

European Commission’s Response

A spokesperson for the European Commission conveyed to TechCrunch that the commission consistently utilizes social media platforms in good faith.

“The Commission is simply using the tools that platforms themselves are making available to our corporate accounts,” the spokesperson explained. “This was the case with the ‘Post Composer’ tool in X.”

The spokesperson further emphasized the expectation that these tools operate in full compliance with both the platforms’ terms and conditions and the relevant legislative framework.

Additionally, the commission confirmed that it suspended paid advertising on X in October 2023, and this suspension remains in place.

This article has been updated to include statements from a European Commission spokesperson.