The European Commission has initiated formal proceedings against Meta Platforms to evaluate if Facebook and Instagram, its properties, have potentially violated the Digital Services Act (DSA) concerning the protection of minors.
Meta shares on the Nasdaq Stock Exchange dropped approximately 1.1%, trading at $476.20.
The Commission expressed concerns that the algorithms and systems of Facebook and Instagram might foster behavioral addictions in children and contribute to the "rabbit-hole effects." Additionally, there are apprehensions regarding Meta's age-assurance and verification methods.
This move stems from a preliminary examination of the risk assessment report submitted by Meta in September 2023, along with the company's responses to the Commission's formal requests about the protection of minors and the risk assessment methodology. The investigation is also informed by publicly available reports and the Commission's own analysis.
As of April 24, 2023, Facebook and Instagram were classified as Very Large Online Platforms (VLOPs) under the EU's Digital Services Act, having more than 45 million monthly active users in the EU. Consequently, both platforms were required to adhere to a set of DSA obligations starting at the end of August 2023.
The Commission's inquiry aims to verify Meta's compliance with DSA obligations related to assessing and mitigating risks posed by the design of Facebook’s and Instagram’s online interfaces. Such designs might exploit minors' vulnerabilities and inexperience, leading to addictive behaviors and reinforcing the 'rabbit hole' effect.
The investigation seeks to protect children’s fundamental rights to physical and mental well-being and ensure respect for their rights. It will also evaluate Meta's adherence to DSA requirements for measures to block minors’ access to inappropriate content, especially focusing on the effectiveness and proportionality of Meta's age-verification tools.
Furthermore, the proceedings will scrutinize Meta's compliance with DSA obligations to ensure a high level of privacy, safety, and security for minors, particularly regarding default privacy settings as part of their recommender systems.
As part of the formal process, the Commission will conduct an in-depth investigation and gather further evidence. This could lead to additional enforcement actions, including interim measures and non-compliance decisions.
Back in late April, the Commission had already launched an investigation into Meta's practices related to deceptive advertising, political content, notice and action mechanisms, and data access for researchers, among other issues.