The move has intensified an already tense standoff between the social media company and EU regulators, who found X guilty of three serious violations relating to transparency and user protection.
According to the European Commission, X misled users through its paid blue-check verification system, failed to maintain a transparent advertising repository, and did not provide researchers with access to public data required by law. These breaches formed the basis of the penalty, regarded as one of the most consequential actions taken under the DSA to date.
Speaking to Tsepiso Makwetla, Senior Brand Strategist at Rogerwilco and host of The Lead Creative Podcast, Mongezi Mtati said the central issue remains transparency, a long-standing challenge for major social media platforms.
He noted that companies repeatedly face penalties over unclear data practices, lack of advertising disclosure, and inadequate access for researchers. However, he believes the fine is unlikely to inflict substantial long-term damage on X due to the platform’s size and its history of weathering regulatory actions.
Mtati described the confrontation as resembling a tit-for-tat dispute. He argued that the Commission’s contention that paid verification misleads users raises legitimate concerns about authenticity, adding that such controversies often prompt large advertisers to leave platforms on ethical grounds. This can affect revenue even when the platform’s broader global influence remains intact.
He added that the decision to block the European Commission’s advertising account appears to be a strategic message from X, signalling a resistance to external pressure and an assertion of control over its platform. But because the action follows so soon after the fine, it risks further damaging X’s reputation by appearing retaliatory rather than a neutral enforcement of platform rules.
Looking ahead, Mtati expects negotiations between X and European regulators, possibly resulting in a reduced fine or revised compliance obligations. He said region-specific rules, similar to General Data Protection Regulation-aligned advertising disclosures on platforms like YouTube, are likely to be implemented on X. He warned that failure to comply could expose the platform to further penalties across other jurisdictions.
–ChannelAfrica–
