X Blocks European Commission's Ads Amid €120M Fine

X deactivates European Commission's ad account after €120M fine X, the social media company, has deactivated the European Commission's advertising account on its platform, citing the commission's alleged misuse of its advertising system. This move comes after the European Commission fined X €120 million for violating the Digital Services Act (DSA). The fine was announced over the weekend, with the commission stating that X's blue checkmark system was deceptive and its advertising repository failed to meet transparency and accessibility requirements. According to X's Head of Product, Nikita Bier, the commission logged into a dormant ad account to take advantage of an exploit in X's Ad Composer, posting a link that deceived users. Bier accused the commission of exploiting X's system, rather than the fine being the reason for deactivating the account. The commission has 60 days to respond to concerns about X's blue checkmark system and 90 days to address ad transparency violations, or face additional penalties. The immediate impact of this move is unclear, but it is likely to escalate tensions between X and the European Commission. X owner Elon Musk has been vocal about his disdain for the EU, posting "How long before the EU is gone? AbolishTheEU" after the fine was announced. The deactivation of the commission's ad account may be seen as a retaliatory measure, but X claims it is a necessary step to protect its users. The Digital Services Act, which came into effect in 2023, aims to regulate large tech companies and ensure they meet transparency and accessibility requirements. X's blue checkmark system, which verifies the identity of users, has been a point of contention between the company and regulators. The commission's fine is the first under the DSA, and it sets a precedent for future enforcement. The European Commission has 60 days to respond to X's concerns about its blue checkmark system and 90 days to address ad transparency violations. If the commission fails to comply, it may face additional penalties. The situation is likely to continue unfolding in the coming weeks and months, with potential implications for the tech industry as a whole.