I=8
EU set to accuse Meta of using addictive design techniques on young users
- The European Commission is preparing to issue preliminary findings that accuse Meta Platforms of using exploitative design techniques to keep young users hooked.
- The commission opened its probe in May 2024 under the Digital Services Act (DSA), and Meta could face a fine of as much as 6% of annual global sales (around $15 billion based on 2026 estimate).
- In a seperate investigation, the commission accussed Meta in April of failing to prevent young children from its platforms.
- In May, the commission fined Temu €200 million for breaching DSA, saying the company “failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.”
Assessment
Given the precedent set by the ongoing youth-related lawsuits in the U.S., the European Commission may not take a lenient approach in its ruling against Meta Platforms. As such, I assign this investigation a risk weighting closer to that of the U.S. youth-related lawsuits.