The European Commission’s first Digital Services Act penalty sparks a heated clash with X over blue checkmarks, ad transparency, and alleged platform misuse.
The €120M Fine That Sparked a Digital Firestorm
The European Commission (EC) levied a €120 million fine on X, formerly known as Twitter, marking the first major enforcement under the EU’s Digital Services Act (DSA). The fine centers on two key violations:
- Deceptive paid verification: The commission labeled X’s blue checkmark system as misleading, claiming it makes users vulnerable to impersonation and fraud.
- Ad transparency failures: The platform’s advertising repository was found lacking in both accessibility and transparency, violating DSA mandates.
The EC demanded corrective actions, giving X 60 days to respond to the blue checkmark concerns and 90 days for the advertising system issues—or face additional penalties.
Musk’s Reaction: Dismissal and Defiance
X owner Elon Musk responded to the fine with characteristic bluntness, calling it “bullshit” on the platform. He followed up with a provocative political jab:
“How long before the EU is gone? #AbolishTheEU”
The sharp tone set the stage for an even more dramatic move by X.
X Deactivates European Commission’s Ad Account
In an unexpected escalation, X disabled the European Commission’s advertising account. According to Nikita Bier, X’s Head of Product, the move wasn’t retaliatory—but a response to “misuse” of the platform’s tools.
Bier accused the EC of re-activating a dormant ad account to exploit a now-patched loophole in the Ad Composer tool. This loophole allegedly allowed posts to mimic video content and artificially boost engagement, violating platform rules.
“You believe that the rules should not apply to your account,” Bier said, justifying the termination of the EC’s ad privileges.
EC Responds: Good Faith and Transparency
A spokesperson for the European Commission pushed back, saying the EC has always used social media platforms “in good faith.” The statement emphasized that:
- The EC’s corporate accounts used tools made available by X.
- The platform’s features should align with its own terms and the EU’s legal standards.
- The EC had already suspended all paid advertising on X as of October 2023.
This clarification suggests the EC sees the ad account suspension as disproportionate and possibly politically motivated.
The Broader Stakes: Tech Platforms vs. Regulation
This incident underscores a growing tension between Big Tech and regulatory authorities. The DSA represents the EU’s strongest legal push yet to hold digital platforms accountable for user safety, content integrity, and advertising transparency.
X’s response—both in rhetoric and action—signals potential noncompliance risks and sets up a possible legal battle over the scope and enforcement of the DSA.
