
The European Commission accused Meta of breaching the Digital Services Act with addictive design features on Facebook and Instagram, demanding changes to infinite scroll and autoplay defaults. Fine up to 6% of revenue.
Alpha Score of 65 reflects moderate overall profile with weak momentum, strong value, strong quality, moderate sentiment.
The European Union accused Meta Platforms on Friday of violating the Digital Services Act with design features on Facebook and Instagram that get users hooked. Brussels demanded the company turn off infinite scrolling and autoplay by default.
The European Commission said Meta failed to assess how those features harm the physical and mental health of users, especially minors. Personalised recommendations and push notifications create an endless feed that puts users' brains on "autopilot" and fuels compulsive use, the commission said in its preliminary findings. Screen time controls that parents can impose are too easily dismissed and do not meaningfully reduce use, it added.
Meta now has a chance to respond before the commission issues a final decision. The fine could reach 6% of Meta's global annual revenue, which totaled $134 billion in 2023. That would be roughly $8 billion.
Meta said it has already taken steps to protect teenagers. The company introduced Teen Accounts that automatically block access at night and cap daily screen time at 15 minutes. "We share the European Commission's commitment to providing teens with safe, positive online experiences," Meta said in a prepared statement.
The commission's proposed changes go beyond defaults. It wants Meta to find better ways to encourage regular breaks and to shift the content recommendation system away from engagement-based optimization. Those changes target the core mechanics that keep users scrolling and drive ad revenue.
The regulatory pressure extends beyond this single case. Brussels opened the investigation in 2024 over concerns that Meta was not doing enough to protect children online. Earlier this year, the EU said Meta failed to stop children under 13 from signing up and did not adequately identify and remove underage users after they had opened accounts.
Henna Virkkunen, the commission's executive vice-president overseeing tech, said protecting the physical and mental health of Europeans must be a priority for social media platforms.
The preliminary findings add uncertainty around Meta's stock. META carries an Alpha Score of 65 out of 100, with the stock at $631.48, up 4.7% on the session. See the META stock page for more. The market has not yet priced in the worst-case regulatory outcome. A final decision could force Meta to redesign engagement features that directly affect time spent on platform and advertiser pricing.
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