UPDATE: X has just deactivated the European Union’s ad account following a staggering €120 million fine issued by the European Commission for breaching the Digital Services Act (DSA). This development marks a critical moment as X becomes the first platform to face such a significant penalty under the new regulations.
The €120 million fine was announced on December 5, 2023, after an investigation revealed serious violations related to account verification and advertising transparency. The Commission concluded that X’s verification system, which allows any user to pay for a blue checkmark, misleads users and undermines the integrity of the platform.
X’s swift response by terminating the EU’s ad account raises questions about its compliance with EU regulations. According to X’s head of product, Nikita Bier, the account was disabled for exploiting the ad composer tool to mislead users. Bier stated, “You logged into your dormant ad account to take advantage of an exploit… Your ad account has been terminated.” This incident further complicates X’s ongoing relationship with EU authorities.
The Commission’s investigation highlighted that X not only failed to provide adequate access to public data for researchers but also did not meet transparency requirements for its advertising repository. These issues jeopardize the integrity of information shared on the platform, leaving users vulnerable to misinformation.
The EU has granted X 60 to 90 days to outline corrective measures for its DSA infringements, putting pressure on the platform to rectify its practices quickly. Earlier reports indicated that the EU was considering fines exceeding $1 billion for further DSA violations.
In response to the incident, a spokesperson for the European Commission stated, “The Commission is simply using the tools that platforms themselves are making available… We expect these tools to be fully in line with the platforms’ own terms and conditions.” The EU had previously suspended paid advertising on X back in October 2023 due to ongoing compliance issues.
Compounding these challenges, Ireland’s Coimisiún na Meán has launched its own investigation into X to evaluate whether users can effectively appeal content moderation decisions. The stakes are high as X navigates these turbulent waters, and the outcome could significantly impact its operations in Europe.
This latest development is unfolding rapidly and raises critical concerns about the future of social media regulation in the EU. The implications for users and advertisers alike are profound as the platform grapples with compliance and transparency in an increasingly scrutinized environment.
Stay tuned for more updates on this urgent situation as it develops.
