The DSA Meta becomes another dispute
The European Commission has informed the European Commission of the presentation of the preliminary findings on the possible infringement of the EU digital service act, the DSA. The investigation concerns how Facebook and Instagram operate and the usage of functions that according to the regulator can lead to excessive engagement of users.
The mechanisms identified by the Commission included infinite content scrolling, automatic video playback, push notifications and advanced level of personalisation-based advice systems. In the Commission's view, these solutions encourage a longer stay in applications and make it hard to end the usage of platforms. This is another phase of the procedure started in May 2024. It is worth noting that the Commission's current position does not yet mean a final decision. The meta has the chance to submit its arguments and to mention to the regulator’s findings.
What charges against Meta mean for e-commerce
Although the issue concerns primarily social platforms, the consequences can besides be felt by online sales companies. Facebook and Instagram stay 1 of the most crucial channels of client acquisition, advertising campaigns and sales building through formats specified as Reels or Stories.
If the European Commission forces changes in the way algorithms work or restricts the usage of circumstantial mechanisms to increase user engagement, this may affect the effectiveness of advertising campaigns and the scope of content published by brands. For the owners of online shops, this means even more focus on the quality of communication, building their own client databases and diversifying traffic sources. Own channels specified as newsletters, loyalty programs or content marketing, which are not dependent on changes in social platform algorithms, are besides becoming increasingly important.
At the same time, it shows that regulators are increasingly analysing not only competition or privacy, but besides the way in which digital products are designed. This trend may in future besides cover another applications and platforms utilized by the e-commerce industry.
The European Commission besides points to the protection of minors
One of the most crucial elements of the procedure is to measure the impact of platforms on younger users. The Commission considered that Meta had not sufficiently analysed the risks arising from the long usage of Facebook and Instagram, especially during night hours.
The regulator besides draws attention to formats designed to keep the user's attention for as long as possible. In the Commission’s assessment, the protective tools utilized by the company, including parental control and functions limiting the duration of the application, do not supply adequate efficiency. According to the EC, their activation is besides complicated and their exclusion is not besides difficult.
If, following the analysis of Meta's reply, the Commission maintains its position, it may make a formal decision to breach the DSA. In this case, the company is facing a financial punishment of up to 6% of full global yearly turnover. The amount of the possible sanction will depend, inter alia, on the nature and scale of the infringement. In parallel, the Commission is conducting a separate investigation towards Meta on user age verification systems, which shows that the supervision of the largest digital platforms will be even more intensive in the coming years.
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FAQ. DSA Meta
- What are the European Commission's allegations of Meta?
The Commission considers that Facebook and Instagram usage solutions to encourage the compulsive usage of platforms and that Meta has not carried out the appropriate hazard assessment required by DSA legislation. - Has Meta been punished yet?
Nope. The Commission presented preliminary findings. The meta can present its position and only later will the regulator decide whether there has been a breach. - How advanced can the punishment be for Meta?
If the European Commission decides to breach the DSA, the maximum punishment may be up to 6% of the company's global yearly turnover. This anticipation is provided for in the Digital Services Act. - Can the case affect social media advertising?
Yeah. Any changes in the operation of algorithms, content recommendations or engagement enhancement functions may affect the way advertising campaigns are conducted and the results achieved. - Why should online store owners follow this case?
Facebook and Instagram are among the most crucial sales and promotion channels for many brands. Any change in the rules of operation of platforms may affect the cost of client acquisition, coverage and efficiency of marketing activities.
