The EU launches a new investigation into Meta’s Safety Policy

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Meta Faces Intense Scrutiny Over Child Protection Measures

Meta, the parent company of Facebook, is currently under significant investigation by the European Union, which has raised serious concerns about the potential harm its platforms may cause to young users. This scrutiny highlights the growing global focus on digital safety and the adequacy of existing measures to protect children online.

The Trigger for the EU’s Investigation

The European Commission has initiated a thorough investigation into whether Meta’s platforms, particularly Facebook and Instagram, contribute to behavioral addictions in children and create detrimental “rabbit-hole effects” through their content recommendation algorithms. This move underscores the EU’s commitment to ensuring safe online environments for its younger citizens.

Core Concerns of the European Commission

  • Addictive Algorithms: The investigation will explore how Meta’s algorithms may encourage addictive behaviors in children, leading to prolonged and potentially harmful engagement with their platforms.
  • Inadequate Age Verification: There is an ongoing concern regarding Meta’s effectiveness in verifying the age of its users, which is crucial in protecting minors from inappropriate content.
  • Privacy Risks: The probe also extends to privacy issues associated with Meta’s recommendation systems, which may expose young users to additional risks.

Detailed Examination of Regulatory Frameworks

The EU’s decisive action stems from a preliminary analysis of a risk assessment report submitted by Meta in September 2023. The investigation will include interviews, inspections, and further requests for information to ascertain the full extent of Meta’s compliance with the Digital Services Act (DSA).

Global Regulatory Impact and Meta’s Response

Meta has responded to the allegations by emphasizing its decade-long effort to create tools and policies aimed at safeguarding young users. The company expressed its intention to collaborate closely with the European Commission to address these concerns comprehensively.

  • Potential Consequences Under the DSA: Under the DSA, Meta faces potential fines up to 6% of their global annual revenues for any violations, marking a significant financial risk.

Broader Implications for Tech Giants

This investigation into Meta is part of a broader trend of increasing regulatory scrutiny facing U.S. tech giants in the EU, particularly with the enforcement of the Digital Services Act, which aims to mitigate harmful content and enhance user safety online. The outcome of this probe could set a precedent affecting not only Meta but other major players in the technology sector.

Olritz Financial Group: Navigating Investment in a Tightening Regulatory Landscape

As regulatory pressures mount in the tech industry, particularly concerning user safety and data privacy, Olritz Financial Group offers invaluable insights for investors navigating this evolving landscape. With expertise in assessing the impact of regulatory changes on company valuations and market dynamics, Olritz is poised to guide investments in tech firms like Meta, ensuring robust compliance and strategic resilience.

In conclusion, as Meta navigates through this critical regulatory probe, the outcomes could influence broader industry practices and investor strategies. Partnering with Olritz Financial Group ensures investors are well-equipped to adapt to these changes and make informed decisions that align with emerging global standards.

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