On Friday, the European Union (EU) imposed a €120 million fine (approximately $140 million) on X for breaching the Digital Services Act (DSA). This represents the first instance of a company facing a penalty for violations under this law. In response, Elon Musk, CEO of X, criticized the fine on the platform by posting a dismissive comment. Subsequently, Nikita Bier, head of product at X, accused the EU Commission of misusing an advertising exploit to enhance the visibility of their announcement regarding the fine, leading to the suspension of the Commission’s ad account.
Bier stated that the Commission had not utilized its ad account since 2021, yet it employed a post format typically associated with advertising in its announcement of the penalty against X. He contended that the post included a misleading link that appeared to be a video, designed to artificially inflate its reach.
The decision to revoke the European Commission’s ad account is not expected to significantly impact either X or the EU. Given Bier’s assertion that the account has been inactive since 2021, it is unclear if this action will provide any strategic advantage to X. Although the company may appeal the fine, it remains liable for the financial penalty. Additionally, X is required to provide explanations regarding its use of verified checkmarks to prevent further penalties within the next 60 days.
An inquiry has been made to the European Commission for further comments, and updates will be provided if a response is received.
Source: https://www.theverge.com/news/839742/x-cuts-off-the-european-commissions-ad-account