The European Commission is preparing to accuse Meta Platforms Inc. of using exploitative design techniques on Facebook and Instagram to keep children addicted, escalating a regulatory battle that could cost the company up to 6% of its global annual revenue under the bloc's Digital Services Act.
The European Commission is preparing to accuse Meta Platforms Inc. of using exploitative design techniques on Facebook and Instagram to keep children addicted, escalating a regulatory battle that could cost the company up to 6% of its global annual revenue under the bloc's Digital Services Act.
The EU's executive arm is set to issue preliminary findings that allege Meta's social media platforms employ addictive design features that hook young users, according to people familiar with the matter who asked not to be identified because the proceedings are not public. Regulators have not yet set a date for the announcement.
"The commission is taking a firm stance on platform design that exploits minors, and this case will test the enforcement teeth of the DSA," said Elena Fischer, a regulatory analyst at Edgen. "If the EU proves its case, Meta could face not just a significant fine but also mandatory changes to how its products are built for younger users."
The probe targets Meta's use of algorithmic recommendations, infinite scroll features and notification systems that regulators argue are designed to maximize screen time among minors. The investigation falls under the DSA, which took full effect for all platforms in February 2024 and imposes fines of as much as 6% of a company's global annual turnover for violations. The last major EU penalty against Meta came in May 2023, when the company was fined €1.2 billion ($1.3 billion) for transferring European user data to the US in violation of privacy rules — a penalty Meta is appealing.
The stakes for Meta extend beyond financial penalties. A formal finding of DSA violations could force the company to redesign core product features for underage users across the 27-nation bloc, affecting tens of millions of young Europeans. The case also sets a precedent for how the EU applies its digital rulebook to platform design — not just data privacy or content moderation — opening a new front in European tech regulation.
The DSA's Expanding Reach
The DSA, which applies to all platforms with more than 45 million monthly active users in the EU, requires companies to conduct annual risk assessments of "systemic risks" including the protection of minors. Meta's Facebook and Instagram each exceed that threshold, making them subject to the strictest tier of obligations. The commission has already designated 25 platforms — including TikTok, YouTube and Snapchat — as subject to enhanced DSA scrutiny.
The EU's move against Meta follows a broader regulatory push targeting child safety online. The UK's Online Safety Act, which came into force in 2025, imposes a duty of care on platforms to protect children from harmful content. Australia passed legislation in 2024 banning under-16s from social media. In the US, more than 30 states have sued Meta alleging its platforms harm young users' mental health, though federal legislation has stalled.
What Comes Next
If the commission issues a formal statement of objections, Meta would have the right to respond and request a hearing before any final decision. The process typically takes 12 to 18 months from preliminary findings to a final ruling. Meta could also offer binding commitments to change its practices to address the EU's concerns, potentially avoiding a fine.
Meta shares fell 1.8% in pre-market trading on the news, according to data compiled by Bloomberg. The stock has gained 22% this year through Monday's close, outperforming the broader market as the company's advertising business has benefited from AI-powered targeting tools — the same algorithmic systems now under EU scrutiny.
This article is for informational purposes only and does not constitute investment advice.
