The European Commission just dropped a regulatory bombshell on two of tech's biggest names. In preliminary findings released Friday, EU officials accused TikTok and Meta of violating transparency rules under the Digital Services Act - potentially setting up multi-billion dollar fines that could reshape how platforms handle researcher access to user data.
The European Commission just fired its biggest regulatory warning shot yet at social media giants, with TikTok and Meta now facing potential fines that could reach into the billions. Friday's preliminary findings mark the first major enforcement action under the EU's transparency provisions in the Digital Services Act, sending shockwaves through Silicon Valley as executives scramble to assess their exposure.
At the heart of the violations lies a seemingly technical but critically important requirement: giving researchers adequate access to platform data. According to European Commission findings, both companies have erected what regulators call "burdensome procedures" that leave researchers with "partial or unreliable data." The implications stretch far beyond compliance - this data access enables crucial research into whether users, particularly minors, face exposure to illegal or harmful content.
Meta faces a double hit. Beyond the researcher access violations affecting both Facebook and Instagram, the Commission found the company failed to provide users with simple mechanisms to report illegal content and effectively challenge moderation decisions. It's a finding that strikes at the core of how Meta operates its content systems across its 3 billion-user empire.
"We disagree with any suggestion that we have breached the DSA, and we continue to negotiate with the European Commission on these matters," Meta spokesperson Ben Walters told CNBC. The company insists it has introduced changes to content reporting, appeals processes, and data access tools since the DSA took effect, arguing these meet EU requirements.
But the Commission's preliminary findings suggest otherwise, painting a picture of platforms that have systematically undermined the transparency goals central to Europe's tech crackdown. The Digital Services Act represents the EU's most ambitious attempt yet to rein in Big Tech's power, complementing the separate Digital Markets Act that has already triggered multiple investigations.
