The European Commission has preliminary findings suggesting Meta and TikTok violated transparency requirements under the Digital Services Act. Both companies now face potential fines reaching 6% of global revenue.
Brussels regulators are tightening their grip on social media giants. The European Commission announced Friday that Meta’s Facebook and Instagram, along with TikTok, failed to provide researchers with adequate access to public data. This marks another significant enforcement action under the EU’s Digital Services Act, which took effect last year.
The investigation centers on a critical DSA requirement: platforms must grant researchers access to public data for independent scrutiny. According to the Commission, this transparency obligation helps assess how social media impacts physical and mental health across Europe.
Flagging Systems Under Scrutiny
Beyond data access issues, the Commission found that Meta’s platforms lack user-friendly mechanisms for reporting illegal content. The current systems reportedly force users through unnecessary steps and employ what regulators call “deceptive interface designs.” This could undermine efforts to quickly remove child sexual abuse material and terrorist content.
Meanwhile, TikTok’s data access procedures also appeared overly complex and burdensome for researchers. The Commission argues these barriers discourage legitimate research into platform operations and content moderation practices.
Companies Push Back on Findings
Meta disputes the preliminary conclusions. A company spokesperson emphasized that Facebook and Instagram have updated their reporting tools, appeals processes, and data access systems since the DSA launched. The spokesperson expressed confidence that these changes meet EU legal requirements.
TikTok raised concerns about conflicting regulations. The company pointed to tensions between the DSA’s data sharing mandates and GDPR privacy protections. A TikTok representative called for regulatory clarity on reconciling these potentially contradictory obligations.
However, the Commission maintains that both companies can address the identified issues. The preliminary findings don’t determine the investigation’s final outcome, leaving room for remediation before any penalties are imposed.
High Stakes for Big Tech
If violations are confirmed after consultations, Meta and TikTok could face substantial financial penalties. The DSA allows fines up to 6% of annual global sales, a significant deterrent given Meta’s $134 billion revenue in 2023.
The enforcement action reflects the EU’s broader strategy to regulate digital platforms. The DSA requires large social media sites and search engines to implement robust safeguards against illegal and harmful content. Transparency obligations, including researcher access to data, form a cornerstone of this regulatory framework.
For Meta, this investigation adds to existing regulatory pressure in Europe. The company already faces multiple DSA-related scrutiny over content moderation and advertising practices. TikTok, meanwhile, continues navigating complex regulatory landscapes across multiple jurisdictions concerned about data practices and content control.
Both companies now have an opportunity to modify their systems before final determinations are made. The Commission’s willingness to issue preliminary findings suggests regulators are serious about enforcing transparency requirements, even against the world’s largest tech platforms.