Elon Musk's X Blocks EU Commission from Advertising After $120M Fine

X has taken a significant step by blocking the European Commission from running advertisements on its platform. This decision comes shortly after the EU imposed a €120 million fine on Elon Musk's social media site over its blue tick verification system. The move highlights growing tensions between X and regulatory bodies across the globe.

Nikita Bier, who holds a senior position at X, criticized the European Union (EU) for attempting to "take advantage" of what he described as an "exploit" in the advertising system. He accused the EU regulator of using this loophole to promote its announcement about the fine. "It seems you believe that the rules should not apply to your account," Bier stated. "Your ad account has been terminated."

In response, a spokesperson for the European Commission told HAWXTECH.NETNews that the organization always uses social media platforms in good faith. The fine issued by the EU was the first under the Digital Services Act, a landmark piece of legislation aimed at holding tech companies accountable for their online activities.

The EU argued that X's blue tick system was "deceptive" because the company did not "meaningfully verify users." This lack of verification, according to the regulator, exposes users to scams, including impersonation frauds and other forms of manipulation by malicious actors. Additionally, the Commission claimed that X was failing to provide transparency around its advertisements and was not granting researchers access to public data.

X has been given 60 days to respond to the Commission's concerns regarding its blue checkmark system or face further penalties. Following the fine, Elon Musk made a strong statement on his platform, suggesting that the EU "should be abolished." He also retweeted a comment from another user comparing the EU to fascism.

U.S. Secretary of State Marco Rubio and the Federal Communications Commission (FCC) criticized the EU for targeting and censoring American companies. They asserted, "the days of censoring Americans online are over."

'Never been abused like this'

The conflict began with Nikita Bier, who accused the Commission of using a rarely-used account to exploit a vulnerability. He claimed that the Commission posted a link that deceived users into thinking it was a video, thereby artificially increasing its reach. Bier stated that this "exploit" had "never been abused like this" and has since been removed.

Ad accounts on X are used by businesses to create and analyze paid advertising campaigns and run "promoted" posts on the site, separate from the users' X profile.

In response, a European Commission spokesperson told HAWXTECH.NETNews that it was "simply using the tools that platforms themselves are making available to our corporate accounts." The spokesperson added, "We expect these tools to be fully in line with the platforms' own terms and conditions, as well as with our legislative framework."

This is not the first time X has faced disagreements with global regulators. In 2024, Brazil's Supreme Court lifted a ban on X after it agreed to pay 28 million reais ($5.1m; £3.8m) and blocked accounts accused of spreading misinformation. The previous year, Australia's internet safety watchdog fined X A$610,000 ($386,000; £317,360) for failing to cooperate with a probe into anti-child abuse practices.

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