Key Takeaways
- X was fined €120 million by the European Commission under the Digital Services Act.
- The fine was due to issues with X’s blue checkmark system and ad transparency.
- X deactivated the European Commission’s ad account, citing misuse of their Ad Composer tool.
Background of the Fine
X faced a €120 million fine from the European Commission, marking the first penalty under the EU’s Digital Services Act. The commission criticized X’s blue checkmark system, labeling it as deceptive and a potential risk for impersonation and scams.
Additionally, the commission pointed out that X’s advertising repository did not meet the transparency and accessibility standards required by the DSA. X has been given 60 days to address the blue checkmark concerns and 90 days to rectify the ad transparency issues.
X’s Response to the Fine
Following the announcement of the fine, X’s owner Elon Musk publicly criticized the decision, calling it “bullshit” and questioning the EU’s future. In response to the situation, X deactivated the European Commission’s ad account.
According to Nikita Bier, X’s Head of Product, the deactivation was due to the commission exploiting X’s Ad Composer tool. Bier accused the commission of using a dormant ad account to post misleading content, artificially boosting its reach.
European Commission’s Stance
A spokesperson for the European Commission stated that they use social media platforms in good faith and expect the tools provided to align with the platforms’ terms and conditions. The commission had already suspended paid advertising on X in October 2023, and this suspension remains in effect.
FAQ
Why was X fined by the European Commission?
X was fined for its deceptive blue checkmark system and failure to meet ad transparency requirements under the EU’s Digital Services Act.
What actions did X take against the European Commission?
X deactivated the European Commission’s ad account, citing misuse of their Ad Composer tool.
What is the European Commission’s response to the ad account deactivation?
The European Commission claims to use social media tools in good faith and expects them to comply with platform terms and legislative frameworks.
Conclusion
This incident highlights the importance of compliance with regulatory standards, especially for companies operating across different jurisdictions. Businesses managing their own software and systems must ensure transparency and adherence to legal frameworks to avoid similar conflicts.
Source: X deactivates European Commission’s ad account after the company was fined €120M – techcrunch.com