Germany's federal anti-discrimination agency (FADA) said Wednesday it was quitting X, formerly known as Twitter, because of "an enormous rise" in hate speech.
Hateful comments and disinformation had "increased particularly" since Elon Musk took over ownership of the platform last year, FADA wrote on X.
"Due to the enormous increase in trans and queer hostility, racism, misogyny, anti-Semitism and other misanthropic content, in our opinion, X is no longer an acceptable environment" for a public body, it said.
Previously blocked far-right accounts have been reactivated and the option to buy verification ticks has allowed "troll factories" to increase their reach and spread propaganda, FADA added.
More than 160 rabbis, artists and leaders of Jewish organisations also recently called out the growing anti-Semitic discourse on X, FADA noted.
The agency urged Germany's ministries and other public bodies to "ask themselves whether it is still acceptable to remain" on X.
A wave of violent images and misleading or fake posts has swept social media in recent days following the Hamas attacks against Israel, further heightening concerns.
Germany's Digital Minister Volker Wissing on Wednesday appealed to Musk and all platform operators "to delete accounts that glorify terror, call for the destruction of Israel and incite violence against Jews".
The EU's digital chief Thierry Breton warned Musk in a letter on Tuesday that X was spreading "illegal content and disinformation" in relation to the conflict between Israel and Hamas.
Musk responded by asking Breton to "list the violations you allude to".
"Our policy is that everything is open source and transparent," Musk wrote on X.