Benzinga - by Shivani Kumaresan, Benzinga Staff Writer.
Meta Platforms Inc (NASDAQ:META), the parent company of Facebook and Instagram, is under scrutiny by EU regulators for potential violations of online content rules related to child safety.
This investigation is part of the broader enforcement of the European Union’s Digital Services Act (DSA) implemented last year.
The DSA requires tech companies to address illegal and harmful content on their platforms, reported Reuters.
European Commission officials have commenced the in-depth probe, highlighting concerns that Meta has not sufficiently mitigated risks to children on its platforms.
These concerns were raised following Meta’s submission of a risk assessment report in last September.
The Commission is particularly worried about the impact of Facebook and Instagram’s algorithms on children, fearing they may contribute to behavioral addictions and lead users to potentially harmful content.
EU regulators are also questioning Meta’s methods for age assurance and verification, suspecting that children might still be accessing inappropriate content.
Also Read: Meta Pulls Plug On Enterprise Communication Tool Workspace After 10 Years
In response, Meta emphasized its commitment to child safety online. A spokesperson for the company stated, “We want young people to have safe, age-appropriate experiences online and have spent a decade developing more than 50 tools and policies designed to protect them.”
“This is a challenge the whole industry is facing, and we look forward to sharing details of our work with the European Commission.”
This investigation is not the only regulatory hurdle for Meta in Europe. The company is already being scrutinized for its role in spreading election disinformation, a significant concern with the European Parliament elections on the horizon.
Violations of the DSA can result in substantial fines, potentially up to 6% of a company’s annual global revenue.
Meta stock has gained more than 99% in the last 12 months. Investors can gain exposure to the stock via Vanguard Communication Services ETF (NYSE:VOX) and Communication Services Select Sector SPDR Fund (NYSE:XLC).
Price Action: META shares are trading lower by 1.26% at $475.42 at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Related Read: French AI Startup, Founded By Former Google And Meta Researchers, Is Up To Challenge Silicon Valley Dominance
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.