TikTok and Meta face huge fines: EU accuses platforms of violating transparency requirements and advertising manipulation
The European Commission has officially stated that TikTok and Meta have violated transparency requirements set by the Digital Services Act (DSA). Violations concern the insufficient openness of algorithms, content moderation systems, and advertising mechanisms, which may affect user rights and competition.
What is known
The European regulator's claims are that Meta (owner of Facebook and Instagram) did not provide sufficient information on how its advertising system works, including targeting and content ranking algorithms. In turn, TikTok is accused of insufficient transparency regarding content moderation and recommendation algorithms.
Both companies have not fully disclosed how users can control personalization and data processing.
As a penalty, the EU may impose fines on TikTok and Meta of up to 6% of the companies' global annual revenue.
Representatives of Meta stated that they disagree with any suggestions that the company has violated the DSA and are negotiating with the European Commission to resolve the situation.
Representatives of TikTok indicated that the platform adheres to EU regulations and requests additional clarification on contentious issues to resolve them.
The EU continues to increase oversight of digital giants, aiming to ensure a more transparent and fair digital environment for users and businesses in Europe. This is not the first time major platforms have faced pressure from the EU; similar claims have previously been made against Google, Amazon, and Apple.
For those unaware
Digital Services Act (DSA) is a European law that came into effect in 2023 and regulates the activities of large digital platforms. It requires them to be transparent about algorithms, offer the option to disable targeted advertisements, ensure fair competition, protect users, and prevent discrimination against third-party services.
Source: CNBC
