BRUSSELS, Dec 8 — In a dramatic escalation of its feud with European regulators, Elon Musk’s X has terminated the European Commission’s advertising account just days after the social media platform was hit with a €120 million (RM574 million) fine for violating the EU’s new digital transparency rules.

X’s head of product, Nikita Bier, announced the move on the platform early Sunday, posting a screenshot of the terminated account with the message: “Your ad account has been terminated.”

According to Politico, the move immediately fuelled a brewing transatlantic trade dispute, with top officials in the Trump administration siding with the US tech company against Brussels.

Bier accused the EU executive of hypocrisy, alleging that it had tried to “take advantage of an exploit” in X’s ad system to artificially boost a post about the very fine it had just issued. 

He claimed the EU was trying to post a link “that deceives users into thinking it’s a video” to increase its reach.

“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,” Bier wrote.

The stand-off began on Thursday when the Commission fined X for breaching the EU’s landmark Digital Services Act (DSA). 

The violations included a lack of transparency in its advertising library and the “deceptive” nature of its paid blue checkmark, which was once a tool for verifying authentic accounts.

“This decision is about the transparency of X,” said the EU’s tech chief, Henna Virkkunen, dismissing claims that the DSA was a tool for censorship.

The fine and X’s subsequent retaliation have been met with sharp criticism from Washington. 

The Trump administration has long argued that the EU’s digital rules, including the DSA, unfairly discriminate against US companies.

US Vice President JD Vance blasted the fine as a punishment for X “not engaging in censorship.” 

His comments echo the administration’s broader stance, with US Secretary of Commerce Howard Lutnick having previously threatened to maintain tariffs on European steel and aluminium unless the EU loosens its digital regulations.