In a dramatic escalation between one of the world’s most powerful social media platforms and the European Union, X (formerly Twitter) has reportedly shut down the European Commission’s advertising account just a day after being hit with a massive $140 million fine. The abrupt move has intensified the growing tensions between the tech platform and European authorities over compliance with digital transparency laws.
Background: The $140 Million Fine Under the Digital Services Act
The fine, issued by the European Commission, marks the first major penalty under the newly enforced Digital Services Act (DSA). This legislation aims to ensure that large online platforms operate transparently, combat disinformation, and provide access to researchers studying online discourse and content moderation.
According to Thomas Regnier, spokesperson for Tech Sovereignty, Defence, Space and Research, the penalty underscores the EU’s commitment to enforcing fair digital practices. The Commission concluded that X failed to meet several critical obligations, including:
– Maintaining a transparent advertising repository.
– Providing accurate and accessible data to researchers.
– Ensuring clarity in its verification system, which the EU claimed could mislead users about the authenticity or trustworthiness of accounts.
These findings align with recurring criticisms that X has been slow to adapt to Europe’s rigorous internet governance framework.
An Exploit and a Swift Reaction
Soon after the fine was announced, Nikita Bier, X’s head of product, accused the European Commission of exploiting a technical loophole. Bier alleged that the Commission used its dormant advertising account to exploit a glitch within X’s Ad Composer. This exploit, he claimed, allowed the Commission’s post announcing the fine to appear as though it contained a video, thereby tricking users and artificially inflating engagement metrics.
Bier emphasized that this exploit had not been used before and was immediately patched once discovered. Nevertheless, he announced that X had permanently revoked the European Commission’s advertising privileges. The measure prevents the institution from purchasing or tracking ads on the platform moving forward.
X’s Bold Retaliation and Musk’s Response
Elon Musk, X’s owner, was characteristically blunt in his response to the European Commission’s announcement of the fine. Musk replied directly to its post on the platform, calling the ruling “bullshit.” This confrontational stance reflects X’s broader resistance to what Musk has described as regulatory overreach from European officials.
The suspension of the Commission’s ad account appears to be both a symbolic and strategic maneuver. It signals that X, under Musk’s leadership, will not hesitate to challenge government bodies that it perceives as acting unfairly. Yet, critics argue that this decision only deepens X’s troubles with regulators, especially as the company is required to submit corrective action plans under the DSA framework.
Potential Implications and Future Outlook
This episode highlights the increasingly adversarial relationship between major tech corporations and global regulators. The EU has consistently positioned itself as the global pioneer in digital governance, introducing laws like the DSA and the Digital Markets Act (DMA) to hold platforms accountable for misinformation, toxic content, and opaque business practices.
For X, the timing could not be worse. The company continues to face scrutiny over content moderation standards, declining advertiser trust, and controversies surrounding verification and revenue-sharing models. Relinquishing cooperation with the European Commission could further complicate compliance efforts, risking additional fines or even temporary restrictions across EU member states.
What Comes Next for X and the EU
The European Commission has yet to outline its next move following the ad account suspension, though internal sources suggest discussions are ongoing. The body is expected to demand clarification on X’s actions and ensure compliance with the DSA’s transparency obligations.
Meanwhile, X will need to submit its action plan detailing how it intends to address the violations cited in the €130 million penalty (approximately $140 million). This plan must include concrete strategies to enhance ad transparency, improve researcher access to data, and rectify misleading design choices in account verification.
If X fails to implement sufficient changes, the European Commission could impose further sanctions or even pursue stricter oversight measures. Analysts believe that the outcome of this conflict may set a lasting precedent for how governments interact with powerful tech entities — one that could redefine global digital regulation.
