The social media platform X, owned by Elon Musk, has deactivated the European Commission’s advertising account just days after receiving a €120 million fine for violating the Digital Services Act (DSA). The unprecedented penalty, announced on December 5, 2023, marks the first fine imposed under the DSA, highlighting significant compliance issues related to transparency in advertising and user verification.
The European Commission’s investigation into X revealed multiple infringements, including concerns over the platform’s account verification process and its failure to provide access to public data for researchers. The Commission found that X’s ‘blue checkmark’ system, which allows any user to pay for verified status, misleads users about the authenticity of accounts and content. According to the Commission, X did not meet DSA requirements regarding the accessibility and transparency of its advertising repository, including excessive delays in processing requests.
In response to the fine, X has 60 to 90 days to inform the Commission of its plans to address these shortcomings. Earlier this year, reports indicated that the EU was preparing to impose fines exceeding $1 billion on X for its DSA violations, underscoring the platform’s ongoing regulatory challenges.
Account Deactivation and Controversy
The deactivation of the European Commission’s ad account occurred shortly after the fine was levied. Nikita Bier, X’s head of product, accused the Commission of exploiting a flaw in the platform’s advertising tools. He stated, “You logged into your dormant ad account to take advantage of an exploit in our Ad Composer – to post a link that deceives users into thinking it’s a video and to artificially increase its reach.” Bier confirmed that the exploit has since been rectified.
A spokesperson for the European Commission responded by emphasizing that the organization utilizes social media tools in good faith and expects compliance with the platforms’ terms. They noted, “The Commission is simply using the tools that platforms themselves are making available to our corporate accounts.”
The Commission had previously suspended paid advertising on X in October 2023, reflecting growing concerns over the platform’s compliance with EU regulations.
Ongoing Investigations and Future Implications
In addition to the recent fine, Ireland’s regulatory body, Coimisiún na Meán, has initiated its own investigation into X to assess whether users can effectively appeal content moderation decisions on the platform. This inquiry adds another layer to the scrutiny X faces as it navigates regulatory frameworks in Europe.
As X attempts to rectify its compliance issues, the implications of these investigations may impact the platform’s operations and reputation in the EU. The outcome could set a precedent for how social media companies manage transparency and user verification moving forward.
