The European Union has escalated its enforcement of digital regulations, charging Meta Platforms Inc. for alleged violations under the Digital Services Act (DSA) and opening a new investigation into Google under the Digital Markets Act (DMA). This marks a significant step in the bloc's broader crackdown on major technology firms, with potential implications for the cryptocurrency industry as regulatory scrutiny increases.
On Friday, the European Commission accused Meta of failing to properly handle illegal content on Facebook and Instagram, citing "deceptive interface designs" that make it difficult for users to report harmful material such as child sexual abuse imagery and terrorist propaganda. The Commission stated that Meta's systems violate DSA rules on transparency and user protection, and preliminary findings also indicate that both Meta and TikTok breached obligations to grant researchers sufficient access to public data.
Simultaneously, the Commission launched a probe into Google's search ranking practices, focusing on its "site reputation abuse" policy, which may unfairly disadvantage news publishers. Under the DMA, companies found in violation face penalties of up to 10% of their annual global revenue, while DSA breaches could result in fines of up to 6% for Meta and TikTok.
Meta spokesperson Ben Walters disagreed with the assessment, stating that the company has made changes to comply with the DSA. TikTok raised concerns about data-sharing rules conflicting with GDPR. Google defended its policy as an anti-spam safeguard, but the EU's actions have drawn criticism from the US, with President Donald Trump labeling them "discriminatory" and threatening retaliatory tariffs.
The DSA, which came into force in 2024, aims to impose stricter standards on online platforms, and these cases could set precedents for how digital regulations are applied globally, including to cryptocurrency exchanges and platforms.
