Friday, the EU slapped X with a €120 million fine (about $140 million) for violating the Digital Services Act (DSA). It was the first time that a company had been hit with a penalty for running afoul of the law. Elon Musk responded with his trademark tact and professionalism by posting “Bullshit” on X in response to the announcement from the European Commission. But that wasn’t the end, because just a day later Nikita Bier, X’s head of product, accused the Commission of abusing an exploit to boost the reach of the announcement and responded by shutting down its ad account.
According to Bier, the Commission had not used its ad account since 2021, but used a post format explicitly reserved for ads in its announcement of the fine against X. He claims that the Commission posted “a link that deceives users into thinking it’s a video and to artificially increase its reach.” (For the record, the post itself includes a video.)
The seemingly retaliatory revocation of the European Commission’s ad account is unlikely to materially change things for either X or the EU. If, as Bier claims, the Commission has not used its ad account since 2021, holding it hostage is unlikely to give X any leverage. And, while it can appeal the decision, X is currently still on the hook for the sizable fine. Plus, it must provide details for how it plans to address the “deceptive” use of verified checkmarks in the next 60 days, or face additional penalties.
We’ve reached out to the Commission for comment and will update if we hear back.
This is an interesting development regarding X and the European Commission. It’s always significant to see how major companies navigate regulatory challenges. The implications of this situation could be far-reaching for digital platforms.
to see how regulatory actions impact major platforms. It’ll be interesting to watch how X responds to this fine and whether they make changes to their policies to avoid future penalties. Additionally, this situation highlights the ongoing tension between tech companies and regulators in the EU.
Absolutely, the fine really highlights the increasing scrutiny on major platforms by regulators. It’ll be fascinating to see if this prompts X to change their policies or enhance transparency in response to user concerns.
You’re right! This situation underscores not only the regulatory pressure but also the potential ripple effects on how platforms operate in Europe. It will be interesting to see if other companies adjust their policies in response to this tightening oversight.
Absolutely, it’s a significant turning point for X. It’ll be interesting to see how the company adapts its advertising strategy moving forward, especially in light of stricter regulations in Europe. This might also prompt a broader discussion on digital accountability across other platforms.
Appreciate this post—concise and informative.
Thank you for your kind words! It’s interesting to consider how this fine might impact X’s advertising strategies in Europe moving forward. It could lead to a shift in how they approach compliance and user privacy.