The European Union has imposed a significant fine of €120 million (approximately AUD 205 million) on X, formerly known as Twitter. This penalty marks the first major enforcement action under the Digital Services Act and was announced on October 20, 2023. The ruling has prompted a swift and pointed response from the platform’s owner, Elon Musk, who referred to the fine as “bullshit” in a post on X.
The situation escalated following a statement from Nikita Bier, X’s head of product. He accused the European Commission of using the platform to amplify its own announcement about the fine. According to Bier, the Commission had reactivated a previously restricted advertising format, a move he interprets as a tactic to gain additional visibility for its message. He noted that the Commission had not utilized its advertising account since 2021 and criticized the inclusion of a video link designed to increase user engagement, which indeed contained an actual video.
In light of these developments, Bier confirmed that X had deactivated the European Commission’s advertising account. This action appears more symbolic than strategic, given that the Commission had ceased advertising activities years ago. Regardless of this gesture, X remains accountable for the substantial fine and must comply with the regulatory requirements set forth by the EU.
Under the stipulations of the Digital Services Act, X has sixty days to detail how it plans to rectify what regulators have described as misleading uses of verified checkmarks. Noncompliance could lead to additional sanctions. The European Commission has been approached for further clarification, and updates will follow if a response is received.
As the fallout from this ruling continues, the implications for X’s operations in the European market are significant. The company faces mounting pressure to align its practices with EU regulations while navigating the public relations challenges stemming from Musk’s outspoken criticism. The ongoing situation highlights the complexities of digital governance in an era where social media platforms are increasingly scrutinized for their compliance with regional laws.
