The European Union on Friday said Meta and TitTok had breached their transparency obligations after an investigation that could result in billions of dollars in fines.
The inquiry found both companies had violated the Digital Services Act, the EU’s trailblazing digital rule book that imposes a set of strict requirements designed to keep internet users safe online, including making it easier to report counterfeit or unsafe goods or flag harmful or illegal content like hate speech, as well as a ban on ads targeted at children.
“We are making sure platforms are accountable for their services, as ensured by EU law, towards users and society,” said Henna Virkunnen, the EU’s executive vice president for tech sovereignty, security and democracy in a post on X.
“Our democracies depend on trust. That means platforms must empower users, respect their rights, and open their systems to scrutiny. The DSA makes this a duty, not a choice.”
The 27-nation bloc launched investigations in 2024 into both Meta and TikTok. They found that the companies did not allow easy access to data for researchers.
They also found that Meta's Instagram and Facebook did not make it easy for users to flag illegal content and effectively challenge moderation decisions.
“Allowing researchers access to platforms’ data is an essential transparency obligation under the DSA, as it provides public scrutiny into the potential impact of platforms on our physical and mental health,” according to a statement by the European Commission, the EU's executive body.
The inquiry found both Facebook and Instagram deployed “dark patterns” or deceptive interface designs for its protocol for flagging malicious content like child sex abuse or terrorist content.
That led to a kind of obfuscation, with the Commission saying it was “confusing and dissuading” and “may therefore be ineffective.”
Meta spokesperson Ben Walters said the company disagrees with the findings but would continue to negotiate with the EU over compliance.
"We have introduced changes to our content reporting options, appeals process, and data access tools since the DSA came into force and are confident that these solutions match what is required under the law in the EU,” he said.
TikTok said Friday that it would review the findings but said that the transparency obligations of the DSA conflict with the EU's strict privacy rules, the General Data Protection Regulation.
"If it is not possible to fully comply with both, we urge regulators to provide clarity on how these obligations should be reconciled,” said Paolo Ganino, a spokesperson for TikTok.
Meta and TikTok can now file a response to the inquiry. Ultimately, the EU could fine the companies up to 6% of their annual profits — which could be in the billions.
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