The Zhitong Finance App learned that EU regulators said on Thursday that they will investigate whether Meta (META.US) violates the Digital Services Act relating to the protection of minors. The European Commission said in a statement that it is concerned that Meta's Facebook and Instagram systems, including their algorithms, may stimulate behavioral addiction in children and create a so-called “rabbit hole effect.”
Additionally, the European Commission is concerned about Meta's age guarantee and verification methods, adding that it will now prioritize in-depth investigations and will continue to gather evidence by “sending additional requests for information, conducting interviews or checks.” The EU further stated: “The commencement of formal procedures empowers the European Commission to take further enforcement steps, such as interim measures and non-compliance decisions.”
The Digital Services Act is a landmark piece of legislation that forces companies such as Meta, X (formerly Twitter), and Google (GOOGL.US) to clearly inform regulators what steps they are taking to combat misinformation on the web and quickly remove illegal content from their platforms. Last month, the European Commission said it was investigating possible violations of the Digital Services Act by Meta on the grounds that it failed to remove “deceptive ads and disinformation” from Facebook and Instagram.