The European Union has preliminarily found Meta Platforms and TikTok in breach of the Digital Services Act (DSA), citing failures in meeting the transparency obligations required by the sweeping online regulation. The European Commission announced that both tech giants may have violated requirements related to algorithmic transparency, advertising disclosures, and data access for researchers.
Digital Services Act at the Core of EU’s Action
The DSA, which came into full effect in 2024, mandates that large online platforms—known as VLOPs (Very Large Online Platforms)—must operate with heightened accountability regarding user data, advertising, and content moderation. The law aims to curb the spread of illegal content, enhance consumer protection, and ensure that online ads and recommender systems are transparent.
Meta and TikTok Under the Microscope
According to the EU’s preliminary findings, Meta (the parent company of Facebook and Instagram) allegedly failed to provide users with sufficient clarity on how their personal data influences targeted advertising. Similarly, TikTok was cited for not offering transparent insights into its algorithmic recommendation systems, particularly those impacting minors’ exposure to content.
Officials stated that both platforms might not have adequately enabled independent researchers to access key data, a fundamental requirement of the DSA designed to promote external scrutiny of digital platforms’ societal impact.
Companies Respond to EU Allegations
Both Meta and TikTok said they are cooperating fully with the European Commission’s investigation. Meta maintained that it “has made significant strides in transparency reporting and user control tools,” while TikTok insisted that it has “prioritized safety and transparency for users, especially young audiences.”
However, the Commission emphasized that the findings are preliminary, and a final decision will follow after further review and company responses.
Potential Consequences and Next Steps
If the violations are confirmed, Meta and TikTok could face fines of up to 6% of their global annual revenue, a penalty that could reach into the billions. The European Commission is expected to release its final rulings in early 2026, setting a crucial precedent for how the DSA will be enforced across the digital landscape.
Broader Implications for Big Tech
This preliminary action underscores the EU’s growing assertiveness in regulating major tech companies under new digital rules. Analysts believe these cases could shape global standards for online transparency and accountability, influencing future regulations in the U.S. and Asia.