BRUSSELS — The European Union said Friday that Meta and TitTok had failed in their transparency obligations after an investigation that could result in fines worth billions of dollars.
The investigation found that both companies had violated the Digital Services Act, the EU’s pioneering digital regulation that imposes a set of strict requirements designed to keep people safe online, including making it easier to report counterfeit or dangerous products or flagging harmful or illegal content like hate speech, as well as banning ads aimed at children.
“We ensure that platforms are responsible for their services, as guaranteed by EU law, towards users and society,” said Henna Virkunnen, EU Executive Vice-President for Technological Sovereignty, Security and Democracy in an article on X. “Our democracies depend on trust. This means that platforms must empower users, respect their rights and open their systems to scrutiny. The DSA makes it a duty and not a choice.
The 27-country bloc has launched investigations in 2024 into Meta and TikTok. They found that companies did not allow researchers easy access to data. They also found that Meta’s Instagram and Facebook networks did not allow users to easily report illegal content and effectively challenge moderation decisions. “Allowing researchers to access data from platforms is a key transparency obligation under the DSA, as it allows the public to monitor the potential impact of platforms on our physical and mental health,” according to a statement from the European Commission, the EU’s executive body. The investigation found that Facebook and Instagram deployed “dark templates” or deceptive interface designs for their protocol for reporting malicious content such as child sexual abuse or terrorist content. This led to something of an obfuscation, with the Commission saying it was “confusing and dissuasive” and “may therefore be ineffective”.
Meta spokesman Ben Walters said the company disagreed with the findings but would continue to negotiate with the EU on compliance. “We have introduced changes to our content reporting options, our appeals process and our data access tools since the DSA came into force and we are confident that these solutions match what is required by EU law,” he said. TikTok said Friday it would review the findings, but said the DSA’s transparency obligations conflicted 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 clarify how these obligations should be reconciled,” said Paolo Ganino, a TikTok spokesperson.
Meta and TikTok can now file a response to the investigation. Ultimately, the EU could fine companies up to 6% of their annual profits, which could run into the billions.
