EU intensifies investigation into Meta's addictive design practices.

      The European Commission is developing initial findings that accuse Facebook and Instagram of using exploitative design aimed at engaging children. The investigation into Meta's addictive design practices could result in a fine of up to 6% of its global revenue.

      Brussels is intensifying its scrutiny of Meta. According to Bloomberg, the European Commission is preparing to formally allege that Facebook and Instagram employ addictive design strategies that capture young users' attention. While regulators have not announced a specific date for revealing these findings, the ongoing proceedings remain confidential.

      Meta did not provide a comment upon request, and a spokesperson for the Commission declined to discuss the matter.

      Details of the investigation encompass the “rabbit-hole effect,” where algorithms continuously engage children with a relentless flow of content. Features such as infinite scroll, autoplay, and constant notifications are under examination, as critics argue these tools prolong the time children spend online beyond their intentions.

      This investigation is distinct from a previous case initiated against Meta in April, where the Commission accused the company of not preventing young children from accessing its platforms. The preliminary findings represent the second formal step in a Digital Services Act (DSA) case, allowing Meta to defend itself and suggest potential remedies. If these efforts are inadequate, the fine could potentially reach 6% of the company's annual global sales.

      The DSA is starting to have a significant impact, with the first two fines imposed under the law occurring in the past year. The Commission fined Elon Musk's X €120 million in December and Temu €200 million last month, with X currently appealing the decision.

      Meta has experienced difficulties in Brussels recently, as it recently suspended an employee tracking initiative due to a data leak.

      This investigation is part of a broader global initiative aimed at protecting children online. The UK is working on implementing a ban on social media for those under 16, while Australia enacted a similar ban last year. The Commission is also considering comparable restrictions, pending the advice of an expert panel expected next month, and has developed its own age-verification application to assist in this initiative.

      Legal actions are also progressing in the United States, where Meta and other platforms are facing thousands of lawsuits claiming their products adversely affect teenagers' mental health. Over 1,300 school districts have filed complaints, and in a recent trial in Los Angeles, a jury found Instagram and YouTube liable, awarding $6 million in damages.

      In conclusion, Meta is facing increasing risks, with two ongoing EU cases, a wave of litigation in the US, and numerous new national bans. A potential 6% fine poses a significant immediate risk, but the greater concern lies in the assertion that the fundamental design of its services, particularly the endless feed, constitutes the violation itself.