X Deactivates European Commission’s Ad Account Following €120M Fine
In a significant escalation of tensions between social media giant X and the European Commission (EC), X has deactivated the EC’s advertising account. This move comes shortly after the EC imposed a €120 million fine on the platform for alleged violations under the European Union’s Digital Services Act (DSA).
Background on the Fine
The European Commission’s fine marks the first enforcement action under the DSA, targeting X’s blue checkmark verification system. The EC labeled this system as deceptive, asserting that it exposes users to potential impersonation and scams. Additionally, the Commission criticized X’s advertising repository for lacking the required transparency and accessibility mandated by the DSA. The EC has given X a 60-day window to address concerns related to the blue checkmarks and 90 days for the advertising transparency issues, warning of further penalties if these are not rectified within the stipulated timeframes.
X’s Response and Account Deactivation
Following the announcement of the fine, X’s owner, Elon Musk, publicly dismissed the penalty as bullshit and provocatively questioned the longevity of the European Union with a post stating, How long before the EU is gone? AbolishTheEU.
In a more direct response, Nikita Bier, X’s Head of Product, accused the European Commission of exploiting the platform’s advertising tools. Bier alleged that the EC accessed a dormant ad account to exploit a vulnerability in X’s Ad Composer, posting links designed to appear as videos to artificially boost their reach. He emphasized that X advocates for equal treatment of all users and suggested that the EC believed itself to be exempt from the platform’s rules. Consequently, Bier announced the termination of the EC’s ad account and noted that the identified exploit had been patched.
European Commission’s Stance
A spokesperson for the European Commission responded by stating that the EC utilizes social media platforms in good faith, employing the tools provided by these platforms for their corporate accounts. The spokesperson highlighted that the EC expects these tools to comply with the platforms’ terms and conditions and align with the legislative framework. Furthermore, it was noted that the Commission had suspended paid advertising on X since October 2023, a suspension that remains in effect.
Broader Implications and Context
This incident underscores the growing friction between major tech platforms and regulatory bodies in the European Union. The DSA aims to enforce stricter oversight on digital platforms, ensuring user safety and transparency. X’s recent actions, including the deactivation of the EC’s ad account, signal a contentious relationship with EU regulators.
This development is part of a broader pattern of regulatory scrutiny faced by tech companies in Europe. For instance, Meta has been fined €798 million for anticompetitive practices related to its Marketplace, and LinkedIn faced a €310 million penalty for privacy violations concerning its tracking ads business. These actions reflect the EU’s commitment to enforcing compliance with its digital regulations.
Conclusion
The deactivation of the European Commission’s ad account by X, following a substantial fine, highlights the escalating tensions between tech giants and regulatory authorities. As the EU continues to enforce the Digital Services Act, the tech industry may face increased challenges in navigating compliance while maintaining their operational practices. The outcome of this dispute could set a precedent for how digital platforms interact with regulatory bodies and adhere to new legislative frameworks.
