Meta Platforms NASDAQ:META faces fresh regulatory pressure after the European Commission preliminarily found that Facebook and Instagram use addictive design features that may violate the Digital Services Act.
Regulators pointed to infinite scroll, autoplay, push notifications and highly personalized recommendation systems, arguing they can encourage excessive or compulsive use, especially among minors and vulnerable adults.
Meta owns Facebook, Instagram, WhatsApp and Messenger, while also investing heavily in advertising technology, artificial intelligence and virtual reality. Most of its revenue still comes from digital ads shown across its social platforms.
The Commission also criticized Meta's parental controls and time-management tools, saying they are easy to dismiss and often require parents to have strong technical knowledge.
The findings are not final. However, a confirmed violation could expose Meta to a fine of up to 6% of its global annual revenue. Meta denies that its platforms are addictive, but it already faces lawsuits from more than 40 U.S. state attorneys general and 1,200 school districts.