X Strikes Back at EU After Record €120M Fine
X, formerly known as Twitter, has suspended the European Commission’s ad account just a day after receiving a €120 million fine for violating the Digital Services Act (DSA). This fine marks the first enforcement action under the DSA, which aims to regulate digital platforms across the EU. Elon Musk’s reaction was brief but pointed, tweeting “Bullshit” shortly after the fine was announced. The move by X’s leadership to revoke the Commission’s ad account adds a new twist to the unfolding regulatory drama.
The Controversy Behind the Commission’s Post
According to Nikita Bier, X’s head of product, the European Commission exploited an ad-specific post format in its fine announcement to artificially boost reach. Bier claims the post, which included a video, was misleading because it appeared clickable like a video link while actually serving an ad function. X argues this tactic violates the platform’s standards for authentic engagement, prompting the unprecedented suspension of the EU’s ad account.
Retaliation or Symbolic Gesture?
Experts suggest that the ad account suspension is largely symbolic. The Commission hasn’t actively used its ad account since 2021, meaning the move gives X little leverage in the larger dispute. Still, it highlights the growing tension between tech giants and European regulators. Analysts note that while dramatic, such actions rarely affect regulatory outcomes, as X remains liable for the full fine and ongoing compliance requirements.
EU’s Next Steps in the DSA Enforcement
The European Commission can appeal X’s actions, but the primary focus remains on ensuring compliance with the DSA. X must detail plans to address “deceptive” use of verified checkmarks within 60 days to avoid further penalties. This regulatory scrutiny comes as the EU steps up enforcement against tech platforms that fail to meet transparency and user safety obligations.
Implications for Tech Regulation
This dispute underscores the broader challenge of regulating global social media platforms. The DSA represents a new legal framework in Europe, aiming to hold tech companies accountable for content moderation and ad transparency. X’s response illustrates the tension between corporate autonomy and regulatory oversight, signaling potential friction in future enforcement cases.
Public and Industry Reactions
The tech industry and users have watched closely, with reactions ranging from concern over corporate retaliation to curiosity about the EU’s enforcement power. Social media analysts argue that while X’s suspension of the ad account grabs headlines, the larger story is the DSA’s enforcement precedent. Companies worldwide are likely monitoring this case to gauge the EU’s regulatory appetite.
What’s Next for X and the EU
For now, X remains under pressure to comply with the DSA while navigating public perception and regulatory scrutiny. The Commission is expected to continue monitoring X’s platform, ensuring the fine and compliance measures are enforced. This high-profile clash may set a tone for future interactions between European regulators and major tech firms, blending legal accountability with public spectacle.
Comment