The European Commission found itself in an unexpected digital standoff this weekend when X terminated its advertising account, just days after the EU hit Elon Musk’s social media platform with a €120 million fine for breaking transparency rules.
X’s head of product, Nikita Bier, announced the move early Sunday morning on the platform itself, telling the Commission: “Your ad account has been terminated.”
The timing couldn’t be more pointed the account suspension came barely 72 hours after Brussels handed down one of its most significant penalties under the Digital Services Act.
Bier didn’t hold back in explaining why X pulled the plug on the EU’s advertising capabilities. According to him, the Commission tried to game the system by exploiting a loophole in X’s Ad Composer tool. The alleged scheme involved creating a post with a link designed to look like a video, potentially tricking users and artificially boosting the post’s visibility.
“The irony of your announcement,” Bier wrote, taking a shot at the EU executive. “X believes everyone should have an equal voice on our platform. However, it seems you believe that the rules should not apply to your account.”
The post Bier referenced was the Commission’s own announcement about fining X for violating EU transparency requirements—making the situation even more awkward for Brussels.
X Hit with €120M EU Fine Over DSA Violations, Sparking New US-Brussels Trade Tensions
The €120 million penalty stems from X’s failure to comply with the Digital Services Act, legislation designed to crack down on illegal content spreading across social media platforms. EU regulators found multiple violations, but two stood out as particularly problematic.
First, X’s advertising library fell short on transparency requirements. The DSA mandates that platforms maintain clear, accessible records of who’s running ads and what they’re promoting something X apparently wasn’t doing adequately.
Second, and perhaps more controversially, the Commission took issue with X’s revamped blue checkmark system. What used to be a verification tool confirming someone’s identity became a subscription feature anyone could purchase. EU officials labeled this shift “deceptive,” arguing it misled users about who they were actually interacting with on the platform.
The fine has become another flashpoint in increasingly strained relations between Washington and Brussels over tech regulation.
The Trump administration has made no secret of its disdain for EU digital rules, particularly the Digital Services Act and the Digital Markets Act, which restrict how tech giants like Google, Amazon, and Meta can operate.
The White House views these regulations as discriminatory against American companies. U.S. Secretary of Commerce Howard Lutnick escalated matters by threatening to maintain 50 percent tariffs on European steel and aluminum exports unless the EU backs off its digital enforcement.
EU Commission Seeks New Ways to Promote Messages on the Platform
U.S. Vice President JD Vance jumped into the fray as well, framing the fine as punishment for X’s refusal to engage in censorship a characterization Brussels firmly rejects.
“The DSA is having not to do with censorship,” insisted Henna Virkkunen, the EU’s tech commissioner, when speaking to reporters Thursday. “This decision is about the transparency of X.”
The European Commission has yet to respond publicly to having its ad account terminated. It’s an unusual predicament for a regulatory body that just days ago flexed its enforcement muscle against one of the world’s most prominent social media platforms.
The situation raises interesting questions about the power dynamics between regulators and the platforms they oversee. Can X simply cut off a government agency’s access to its advertising tools without consequence? Does this move constitute retaliation that could trigger additional regulatory action?
For now, the Commission will need to find alternative ways to promote its messages on X, or potentially reconsider whether it wants to maintain a presence on a platform that’s willing to freeze it out.
The incident certainly won’t help cool tensions between Silicon Valley and European regulators, who seem destined for continued conflict over how social media should operate in the digital age.
As this drama unfolds, one thing is clear: the battle over online content moderation, transparency, and regulatory authority is far from over.
