X Denies Ad Account Ban by European Commission After $140M Fine

X Denies Ad Account Ban by European Commission After $140M Fine

On Saturday, X announced it had banned the European Commission from its advertising platform after a claimed rules violation. This development closely followed a hefty fine imposed on X by the European Commission, totaling around $140 million (approximately €130 million) for alleged deception and lack of transparency regarding necessary data disclosures.

Despite this, a representative from the European Commission emphasized that the organization has not engaged in paid advertising on X for over two years. This policy is clear-cut and has been in place since 2023.

In a post from Nikita Bier, X’s head of product, claims were made that the European Commission’s tweet announcing the fine was misleading. He stated that they exploited a flaw in X’s ad composer to create a post that deceives users into believing it was a video, thus artificially increasing its engagement.

The European Commission’s original post features a video that highlights the fine and the reasons behind it:

However, a spokesperson for the Commission informed Gizmodo that their ban on advertising is still enforced, and they have previously declared a suspension of all paid services on the platform. The spokesperson reiterated, “The suspension still applies.”

The video in the Commission’s tweet appears to feature a play button but auto-plays instead of allowing for a pause. This phenomenon echoes instances with other video posts on X, such as a video from Kawasaki. Tests indicated that while the play/pause function works seamlessly on desktop, issues arise on mobile. On mobile devices, attempting to pause the video instead diverts users to the Commission’s press release about the fine.

According to the spokesperson, the Commission utilizes the same tools available to corporate accounts on the platform, including the Post Composer feature. “We expect these tools to align with the platforms’ own terms and conditions,” they stated.

The Commission remains firm that they use all social media platforms in good faith. Notably, it remains unclear exactly how they accessed certain features without engaging in payment for premium plans, especially as their X account retains a gray checkmark, which indicates it is a verified account for governmental and multilateral organizations.

As developments continue, both parties are expected to clarify their positions. If any new insights emerge from X or the European Commission about this scenario, we will be sure to provide updates.

What implications does this incident hold for social media platforms in terms of compliance and transparency? This question can spark conversations about the future relationships between regulatory bodies and digital platforms, especially as standards evolve to ensure user trust and safety.

How might companies handle social media transparency moving forward amidst regulatory scrutiny? This situation serves as a pivotal case that will likely influence companies’ strategies in digital advertising and communication.

What can we learn about user perception based on this incident? Understanding how users react to perceived deception is crucial for improving the integrity of advertisements and sound social media practices.

For those keen to explore further about digital advertising regulations and best practices, consider diving into more content at Moyens I/O.