The European Union (EU) has accused Meta Platforms Inc. (NASDAQ:META) of violating its digital laws due to the ‘addictive’ designs of its Instagram and Facebook platforms.
On Friday, a preliminary report by the EU found that Meta had breached the Digital Services Act. The EU’s executive branch, the European Commission, stated that Meta did not adequately evaluate the risks that certain design features could pose to users’ physical health, particularly minors and vulnerable adults.
The investigation focuses on infinite scroll, autoplay, push notifications, and personalized recommendations. If confirmed, Meta could face fines of up to 6% of its annual revenue, or nearly $12 billion.
Meta has contested these initial findings. A company spokesperson told CNBC the company disputes the preliminary findings, saying they fail to reflect the significant measures it has implemented to protect teenagers. The company has since launched Teen Accounts, which provide automatic protection for teens and allow parents to control access, including setting a daily screen time limit of 15 minutes.
Meta did not immediately respond to Benzinga‘s request for comment.
Legal Heat on Big Tech
These events highlight the increasing scrutiny tech giants are facing over their business practices, particularly in the EU.
Earlier this month, a U.S. federal judge allowed most of a lawsuit by 29 state attorneys general against Meta to proceed, rejecting the company’s bid to dismiss claims that it deceived the public, engaged in unfair practices, and violated the Children’s Online Privacy Protection Act (COPPA). The lawsuit alleges Meta designed Facebook and Instagram to encourage addictive use among children and teens while concealing mental health risks.
Around the same time, the EU’s top court upheld a record $4.7 billion antitrust fine against Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) Google for anti-competitive practices related to the Android operating system.
Additionally, Apple Inc. (NASDAQ:AAPL) also lost a challenge against the European Commission, reinforcing the EU’s antitrust efforts. The EU’s General Court upheld the European Commission’s decision to classify Apple’s App Store and iOS as DMA “gatekeepers,” dismissing Apple’s challenge and ruling its iMessage appeal inadmissible. The decision reinforces the Digital Markets Act, which imposes strict obligations on major tech firms and allows fines of up to 10% of global annual revenue for violations.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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