According to Techmeme, the European Commission has been fined a staggering €120 million by X (formerly Twitter) for deceptive advertising practices. The fine stems from the Commission using a dormant ad account to post a misleading link disguised as a video, which X says was an attempt to artificially boost its reach. In a swift and public retaliation, Elon Musk personally terminated the EU Commission’s advertising account on the platform. The Commission had announced the fine via its official X account, @eu_commission, on May 21st. Musk responded directly, accusing the EU of abusing its power and stating the ad account was shut down for rule violations. This follows separate, serious allegations from investor Keith Rabois that fintech firm Airwallex allowed Chinese staff to access U.S. client data.
The irony is the point
Here’s the thing: this isn’t just a spat over ad policy. It’s a calculated power play. The EU, as a regulator, has been bearing down on X with the Digital Services Act, demanding transparency and accountability. So what does X do? It turns the tables and uses its own platform rules to sanction the regulator itself. The message from Musk is clear: you might fine me, but I control the infrastructure. It’s a stark demonstration of platform power. The move to ban the EU’s ad account, especially after they used it to announce the fine, is the most public “you can’t sit with us” moment in recent tech history.
A strategy of escalation
But let’s talk business strategy. What does X gain from this? It’s not revenue—€120 million is a huge sum, but burning bridges with a major governmental bloc seems insane for an ad-based company. Right? Well, maybe not. Musk’s X is increasingly positioning itself not as a neutral town square, but as a combatant in a culture war. This plays directly to his core audience. The beneficiaries are his most ardent supporters who see institutions like the EU as overreaching. He’s trading traditional, brand-safe ad revenue for a more polarized, but highly engaged, user base. It’s a risky, all-in bet on a different model where controversy itself is the engine.
The bigger picture of data and control
And this brings us to the other half of the Techmeme summary: the Airwallex allegations. It feels disconnected, but it’s part of the same tapestry. Keith Rabois’s accusation that Airwallex enabled Chinese access to US data taps into the deepest fears about tech sovereignty and control. It’s the same fundamental tension: who controls the infrastructure, and who has access to the data flowing through it? Musk framing the EU fight as one of free speech versus censorship is a political argument. The Airwallex story is the hard, technical reality of that struggle. When platforms and financial pipes become geopolitical battlegrounds, everything—from a deceptive ad to a database query—becomes a weapon. So, is Musk just fighting the last war, or is he defining the new rules of engagement? Looks like we’re all about to find out.
