EU Regulators Find Meta and TikTok Violated Digital Services Act Transparency Rules

Lilu Anderson
Photo: Finoracle.net

The European Commission’s preliminary findings highlight significant compliance challenges for Meta and TikTok under the Digital Services Act. These issues underscore the increasing regulatory scrutiny of major social media platforms concerning transparency, user protection, and content moderation. !-- wp:paragraph -->

Contents
FinOracleAI — Market ViewFinOracleAI — Market ViewFinOracleAI — Market ViewBackground: Investigations and Regulatory FrameworkFinOracleAI — Market ViewMeta Disputes Breach Allegations, Cites Ongoing Compliance EffortsBackground: Investigations and Regulatory FrameworkFinOracleAI — Market ViewTikTok Responds to Findings Amid Regulatory ScrutinyMeta Disputes Breach Allegations, Cites Ongoing Compliance EffortsBackground: Investigations and Regulatory FrameworkFinOracleAI — Market ViewTikTok Responds to Findings Amid Regulatory ScrutinyMeta Disputes Breach Allegations, Cites Ongoing Compliance EffortsBackground: Investigations and Regulatory FrameworkFinOracleAI — Market ViewMeta Platforms Fall Short on Content Reporting and Appeal MechanismsTikTok Responds to Findings Amid Regulatory ScrutinyMeta Disputes Breach Allegations, Cites Ongoing Compliance EffortsBackground: Investigations and Regulatory FrameworkFinOracleAI — Market ViewMeta Platforms Fall Short on Content Reporting and Appeal MechanismsTikTok Responds to Findings Amid Regulatory ScrutinyMeta Disputes Breach Allegations, Cites Ongoing Compliance EffortsBackground: Investigations and Regulatory FrameworkFinOracleAI — Market ViewEU Investigation Reveals Transparency Breaches by Meta and TikTokMeta Platforms Fall Short on Content Reporting and Appeal MechanismsTikTok Responds to Findings Amid Regulatory ScrutinyMeta Disputes Breach Allegations, Cites Ongoing Compliance EffortsBackground: Investigations and Regulatory FrameworkFinOracleAI — Market View
  • Opportunities: Enhanced transparency and streamlined data access could improve public trust and enable more robust academic research.
  • Risks: Prolonged regulatory disputes could lead to substantial fines and operational disruptions, impacting user engagement and revenue.
  • Potential revisions to platform design may be necessary to eliminate dark patterns and simplify user reporting mechanisms.
  • Regulatory clarity on reconciling data protection (GDPR) with transparency obligations (DSA) is critical for compliance strategies.
Impact: The findings signal a cautious outlook for Meta and TikTok as they navigate evolving EU digital regulations. Compliance efforts and regulatory resolutions will be key to maintaining market stability and user trust within the region. !-- wp:paragraph --> The Digital Services Act is the EU’s comprehensive regulatory framework aimed at enhancing transparency, accountability, and consumer protection in digital services. It imposes stringent obligations on major platforms, including algorithmic transparency and risk mitigation measures. Breaches can incur penalties of up to 6% of a company’s global annual revenue. !-- wp:paragraph --> Both Meta and TikTok will have the opportunity to review the Commission’s investigation documents, formally respond to the findings, and commit to corrective actions. !-- wp:paragraph -->

FinOracleAI — Market View

The European Commission’s preliminary findings highlight significant compliance challenges for Meta and TikTok under the Digital Services Act. These issues underscore the increasing regulatory scrutiny of major social media platforms concerning transparency, user protection, and content moderation. !-- wp:paragraph -->
  • Opportunities: Enhanced transparency and streamlined data access could improve public trust and enable more robust academic research.
  • Risks: Prolonged regulatory disputes could lead to substantial fines and operational disruptions, impacting user engagement and revenue.
  • Potential revisions to platform design may be necessary to eliminate dark patterns and simplify user reporting mechanisms.
  • Regulatory clarity on reconciling data protection (GDPR) with transparency obligations (DSA) is critical for compliance strategies.
Impact: The findings signal a cautious outlook for Meta and TikTok as they navigate evolving EU digital regulations. Compliance efforts and regulatory resolutions will be key to maintaining market stability and user trust within the region. !-- wp:paragraph --> The investigations were initiated in early 2024 amid concerns about advertising transparency, data access for research, content moderation, and the protection of minors on TikTok. Meta was scrutinized following allegations that Facebook and Instagram violated rules applicable to large platforms, particularly regarding election integrity. !-- wp:paragraph --> The Digital Services Act is the EU’s comprehensive regulatory framework aimed at enhancing transparency, accountability, and consumer protection in digital services. It imposes stringent obligations on major platforms, including algorithmic transparency and risk mitigation measures. Breaches can incur penalties of up to 6% of a company’s global annual revenue. !-- wp:paragraph --> Both Meta and TikTok will have the opportunity to review the Commission’s investigation documents, formally respond to the findings, and commit to corrective actions. !-- wp:paragraph -->

FinOracleAI — Market View

The European Commission’s preliminary findings highlight significant compliance challenges for Meta and TikTok under the Digital Services Act. These issues underscore the increasing regulatory scrutiny of major social media platforms concerning transparency, user protection, and content moderation. !-- wp:paragraph -->
  • Opportunities: Enhanced transparency and streamlined data access could improve public trust and enable more robust academic research.
  • Risks: Prolonged regulatory disputes could lead to substantial fines and operational disruptions, impacting user engagement and revenue.
  • Potential revisions to platform design may be necessary to eliminate dark patterns and simplify user reporting mechanisms.
  • Regulatory clarity on reconciling data protection (GDPR) with transparency obligations (DSA) is critical for compliance strategies.
Impact: The findings signal a cautious outlook for Meta and TikTok as they navigate evolving EU digital regulations. Compliance efforts and regulatory resolutions will be key to maintaining market stability and user trust within the region. !-- wp:paragraph --> The investigations were initiated in early 2024 amid concerns about advertising transparency, data access for research, content moderation, and the protection of minors on TikTok. Meta was scrutinized following allegations that Facebook and Instagram violated rules applicable to large platforms, particularly regarding election integrity. !-- wp:paragraph --> The Digital Services Act is the EU’s comprehensive regulatory framework aimed at enhancing transparency, accountability, and consumer protection in digital services. It imposes stringent obligations on major platforms, including algorithmic transparency and risk mitigation measures. Breaches can incur penalties of up to 6% of a company’s global annual revenue. !-- wp:paragraph --> Both Meta and TikTok will have the opportunity to review the Commission’s investigation documents, formally respond to the findings, and commit to corrective actions. !-- wp:paragraph -->

FinOracleAI — Market View

The European Commission’s preliminary findings highlight significant compliance challenges for Meta and TikTok under the Digital Services Act. These issues underscore the increasing regulatory scrutiny of major social media platforms concerning transparency, user protection, and content moderation. !-- wp:paragraph -->
  • Opportunities: Enhanced transparency and streamlined data access could improve public trust and enable more robust academic research.
  • Risks: Prolonged regulatory disputes could lead to substantial fines and operational disruptions, impacting user engagement and revenue.
  • Potential revisions to platform design may be necessary to eliminate dark patterns and simplify user reporting mechanisms.
  • Regulatory clarity on reconciling data protection (GDPR) with transparency obligations (DSA) is critical for compliance strategies.
Impact: The findings signal a cautious outlook for Meta and TikTok as they navigate evolving EU digital regulations. Compliance efforts and regulatory resolutions will be key to maintaining market stability and user trust within the region. !-- wp:paragraph --> Meta contested the Commission’s preliminary conclusions, asserting that it has implemented changes to its content reporting, appeal processes, and data access tools to comply with the DSA since its enforcement. The company expressed confidence that its current measures meet EU legal requirements and noted ongoing negotiations with the EC. !-- wp:paragraph -->
“We disagree with any suggestion that we have breached the DSA, and we continue to negotiate with the European Commission on these matters. In the European Union, we have introduced changes to our content reporting options, appeals process, and data access tools since the DSA came into force and are confident that these solutions match what is required under the law in the EU,” a Meta spokesperson said.

Background: Investigations and Regulatory Framework

The investigations were initiated in early 2024 amid concerns about advertising transparency, data access for research, content moderation, and the protection of minors on TikTok. Meta was scrutinized following allegations that Facebook and Instagram violated rules applicable to large platforms, particularly regarding election integrity. !-- wp:paragraph --> The Digital Services Act is the EU’s comprehensive regulatory framework aimed at enhancing transparency, accountability, and consumer protection in digital services. It imposes stringent obligations on major platforms, including algorithmic transparency and risk mitigation measures. Breaches can incur penalties of up to 6% of a company’s global annual revenue. !-- wp:paragraph --> Both Meta and TikTok will have the opportunity to review the Commission’s investigation documents, formally respond to the findings, and commit to corrective actions. !-- wp:paragraph -->

FinOracleAI — Market View

The European Commission’s preliminary findings highlight significant compliance challenges for Meta and TikTok under the Digital Services Act. These issues underscore the increasing regulatory scrutiny of major social media platforms concerning transparency, user protection, and content moderation. !-- wp:paragraph -->
  • Opportunities: Enhanced transparency and streamlined data access could improve public trust and enable more robust academic research.
  • Risks: Prolonged regulatory disputes could lead to substantial fines and operational disruptions, impacting user engagement and revenue.
  • Potential revisions to platform design may be necessary to eliminate dark patterns and simplify user reporting mechanisms.
  • Regulatory clarity on reconciling data protection (GDPR) with transparency obligations (DSA) is critical for compliance strategies.
Impact: The findings signal a cautious outlook for Meta and TikTok as they navigate evolving EU digital regulations. Compliance efforts and regulatory resolutions will be key to maintaining market stability and user trust within the region. !-- wp:paragraph --> TikTok has defended its practices, highlighting substantial investments in data sharing and claiming to have granted nearly 1,000 research teams access to data through its research tools. A company spokesperson emphasized the challenge of reconciling the DSA’s data sharing requirements with data protection obligations under the GDPR, urging regulators to clarify how these frameworks should align. !-- wp:paragraph -->
“We are reviewing the European Commission’s findings, but requirements to ease data safeguards place the DSA and GDPR in direct tension. If it is not possible to fully comply with both, we urge regulators to provide clarity on how these obligations should be reconciled,” the TikTok representative stated.

Meta Disputes Breach Allegations, Cites Ongoing Compliance Efforts

Meta contested the Commission’s preliminary conclusions, asserting that it has implemented changes to its content reporting, appeal processes, and data access tools to comply with the DSA since its enforcement. The company expressed confidence that its current measures meet EU legal requirements and noted ongoing negotiations with the EC. !-- wp:paragraph -->
“We disagree with any suggestion that we have breached the DSA, and we continue to negotiate with the European Commission on these matters. In the European Union, we have introduced changes to our content reporting options, appeals process, and data access tools since the DSA came into force and are confident that these solutions match what is required under the law in the EU,” a Meta spokesperson said.

Background: Investigations and Regulatory Framework

The investigations were initiated in early 2024 amid concerns about advertising transparency, data access for research, content moderation, and the protection of minors on TikTok. Meta was scrutinized following allegations that Facebook and Instagram violated rules applicable to large platforms, particularly regarding election integrity. !-- wp:paragraph --> The Digital Services Act is the EU’s comprehensive regulatory framework aimed at enhancing transparency, accountability, and consumer protection in digital services. It imposes stringent obligations on major platforms, including algorithmic transparency and risk mitigation measures. Breaches can incur penalties of up to 6% of a company’s global annual revenue. !-- wp:paragraph --> Both Meta and TikTok will have the opportunity to review the Commission’s investigation documents, formally respond to the findings, and commit to corrective actions. !-- wp:paragraph -->

FinOracleAI — Market View

The European Commission’s preliminary findings highlight significant compliance challenges for Meta and TikTok under the Digital Services Act. These issues underscore the increasing regulatory scrutiny of major social media platforms concerning transparency, user protection, and content moderation. !-- wp:paragraph -->
  • Opportunities: Enhanced transparency and streamlined data access could improve public trust and enable more robust academic research.
  • Risks: Prolonged regulatory disputes could lead to substantial fines and operational disruptions, impacting user engagement and revenue.
  • Potential revisions to platform design may be necessary to eliminate dark patterns and simplify user reporting mechanisms.
  • Regulatory clarity on reconciling data protection (GDPR) with transparency obligations (DSA) is critical for compliance strategies.
Impact: The findings signal a cautious outlook for Meta and TikTok as they navigate evolving EU digital regulations. Compliance efforts and regulatory resolutions will be key to maintaining market stability and user trust within the region. !-- wp:paragraph --> In addition, the moderation appeal processes on both platforms were found to restrict EU residents from fully articulating or submitting evidence to support their appeals. This limitation undermines the effectiveness of content moderation appeals, as users cannot adequately challenge content decisions. !-- wp:paragraph -->

TikTok Responds to Findings Amid Regulatory Scrutiny

TikTok has defended its practices, highlighting substantial investments in data sharing and claiming to have granted nearly 1,000 research teams access to data through its research tools. A company spokesperson emphasized the challenge of reconciling the DSA’s data sharing requirements with data protection obligations under the GDPR, urging regulators to clarify how these frameworks should align. !-- wp:paragraph -->
“We are reviewing the European Commission’s findings, but requirements to ease data safeguards place the DSA and GDPR in direct tension. If it is not possible to fully comply with both, we urge regulators to provide clarity on how these obligations should be reconciled,” the TikTok representative stated.

Meta Disputes Breach Allegations, Cites Ongoing Compliance Efforts

Meta contested the Commission’s preliminary conclusions, asserting that it has implemented changes to its content reporting, appeal processes, and data access tools to comply with the DSA since its enforcement. The company expressed confidence that its current measures meet EU legal requirements and noted ongoing negotiations with the EC. !-- wp:paragraph -->
“We disagree with any suggestion that we have breached the DSA, and we continue to negotiate with the European Commission on these matters. In the European Union, we have introduced changes to our content reporting options, appeals process, and data access tools since the DSA came into force and are confident that these solutions match what is required under the law in the EU,” a Meta spokesperson said.

Background: Investigations and Regulatory Framework

The investigations were initiated in early 2024 amid concerns about advertising transparency, data access for research, content moderation, and the protection of minors on TikTok. Meta was scrutinized following allegations that Facebook and Instagram violated rules applicable to large platforms, particularly regarding election integrity. !-- wp:paragraph --> The Digital Services Act is the EU’s comprehensive regulatory framework aimed at enhancing transparency, accountability, and consumer protection in digital services. It imposes stringent obligations on major platforms, including algorithmic transparency and risk mitigation measures. Breaches can incur penalties of up to 6% of a company’s global annual revenue. !-- wp:paragraph --> Both Meta and TikTok will have the opportunity to review the Commission’s investigation documents, formally respond to the findings, and commit to corrective actions. !-- wp:paragraph -->

FinOracleAI — Market View

The European Commission’s preliminary findings highlight significant compliance challenges for Meta and TikTok under the Digital Services Act. These issues underscore the increasing regulatory scrutiny of major social media platforms concerning transparency, user protection, and content moderation. !-- wp:paragraph -->
  • Opportunities: Enhanced transparency and streamlined data access could improve public trust and enable more robust academic research.
  • Risks: Prolonged regulatory disputes could lead to substantial fines and operational disruptions, impacting user engagement and revenue.
  • Potential revisions to platform design may be necessary to eliminate dark patterns and simplify user reporting mechanisms.
  • Regulatory clarity on reconciling data protection (GDPR) with transparency obligations (DSA) is critical for compliance strategies.
Impact: The findings signal a cautious outlook for Meta and TikTok as they navigate evolving EU digital regulations. Compliance efforts and regulatory resolutions will be key to maintaining market stability and user trust within the region. !-- wp:paragraph --> The EC further identified breaches by Meta’s platforms, Instagram and Facebook, regarding obligations to provide EU users with straightforward methods to report illegal content. The platforms reportedly enforce multiple unnecessary steps before users can submit reports, employing so-called “dark patterns” — design techniques that manipulate user behavior to impede reporting. !-- wp:paragraph -->
“Such practices can be confusing and dissuading. Meta’s mechanisms to flag and remove illegal content may therefore be ineffective,” the European Commission stated.
In addition, the moderation appeal processes on both platforms were found to restrict EU residents from fully articulating or submitting evidence to support their appeals. This limitation undermines the effectiveness of content moderation appeals, as users cannot adequately challenge content decisions. !-- wp:paragraph -->

TikTok Responds to Findings Amid Regulatory Scrutiny

TikTok has defended its practices, highlighting substantial investments in data sharing and claiming to have granted nearly 1,000 research teams access to data through its research tools. A company spokesperson emphasized the challenge of reconciling the DSA’s data sharing requirements with data protection obligations under the GDPR, urging regulators to clarify how these frameworks should align. !-- wp:paragraph -->
“We are reviewing the European Commission’s findings, but requirements to ease data safeguards place the DSA and GDPR in direct tension. If it is not possible to fully comply with both, we urge regulators to provide clarity on how these obligations should be reconciled,” the TikTok representative stated.

Meta Disputes Breach Allegations, Cites Ongoing Compliance Efforts

Meta contested the Commission’s preliminary conclusions, asserting that it has implemented changes to its content reporting, appeal processes, and data access tools to comply with the DSA since its enforcement. The company expressed confidence that its current measures meet EU legal requirements and noted ongoing negotiations with the EC. !-- wp:paragraph -->
“We disagree with any suggestion that we have breached the DSA, and we continue to negotiate with the European Commission on these matters. In the European Union, we have introduced changes to our content reporting options, appeals process, and data access tools since the DSA came into force and are confident that these solutions match what is required under the law in the EU,” a Meta spokesperson said.

Background: Investigations and Regulatory Framework

The investigations were initiated in early 2024 amid concerns about advertising transparency, data access for research, content moderation, and the protection of minors on TikTok. Meta was scrutinized following allegations that Facebook and Instagram violated rules applicable to large platforms, particularly regarding election integrity. !-- wp:paragraph --> The Digital Services Act is the EU’s comprehensive regulatory framework aimed at enhancing transparency, accountability, and consumer protection in digital services. It imposes stringent obligations on major platforms, including algorithmic transparency and risk mitigation measures. Breaches can incur penalties of up to 6% of a company’s global annual revenue. !-- wp:paragraph --> Both Meta and TikTok will have the opportunity to review the Commission’s investigation documents, formally respond to the findings, and commit to corrective actions. !-- wp:paragraph -->

FinOracleAI — Market View

The European Commission’s preliminary findings highlight significant compliance challenges for Meta and TikTok under the Digital Services Act. These issues underscore the increasing regulatory scrutiny of major social media platforms concerning transparency, user protection, and content moderation. !-- wp:paragraph -->
  • Opportunities: Enhanced transparency and streamlined data access could improve public trust and enable more robust academic research.
  • Risks: Prolonged regulatory disputes could lead to substantial fines and operational disruptions, impacting user engagement and revenue.
  • Potential revisions to platform design may be necessary to eliminate dark patterns and simplify user reporting mechanisms.
  • Regulatory clarity on reconciling data protection (GDPR) with transparency obligations (DSA) is critical for compliance strategies.
Impact: The findings signal a cautious outlook for Meta and TikTok as they navigate evolving EU digital regulations. Compliance efforts and regulatory resolutions will be key to maintaining market stability and user trust within the region. !-- wp:paragraph --> An investigation conducted by European Union regulators has concluded that Meta and TikTok have violated the Digital Services Act (DSA) rules governing transparency and data accessibility for researchers. The European Commission (EC) announced on Friday that preliminary findings show both companies failed to provide adequate access to public data as mandated by the legislation. !-- wp:paragraph --> The Commission criticized the procedures and tools implemented by Meta and TikTok as “burdensome,” which often results in researchers receiving incomplete or unreliable datasets. This limitation hampers the ability to study critical issues such as exposure of users, including minors, to illegal or harmful online content. !-- wp:paragraph -->

Meta Platforms Fall Short on Content Reporting and Appeal Mechanisms

The EC further identified breaches by Meta’s platforms, Instagram and Facebook, regarding obligations to provide EU users with straightforward methods to report illegal content. The platforms reportedly enforce multiple unnecessary steps before users can submit reports, employing so-called “dark patterns” — design techniques that manipulate user behavior to impede reporting. !-- wp:paragraph -->
“Such practices can be confusing and dissuading. Meta’s mechanisms to flag and remove illegal content may therefore be ineffective,” the European Commission stated.
In addition, the moderation appeal processes on both platforms were found to restrict EU residents from fully articulating or submitting evidence to support their appeals. This limitation undermines the effectiveness of content moderation appeals, as users cannot adequately challenge content decisions. !-- wp:paragraph -->

TikTok Responds to Findings Amid Regulatory Scrutiny

TikTok has defended its practices, highlighting substantial investments in data sharing and claiming to have granted nearly 1,000 research teams access to data through its research tools. A company spokesperson emphasized the challenge of reconciling the DSA’s data sharing requirements with data protection obligations under the GDPR, urging regulators to clarify how these frameworks should align. !-- wp:paragraph -->
“We are reviewing the European Commission’s findings, but requirements to ease data safeguards place the DSA and GDPR in direct tension. If it is not possible to fully comply with both, we urge regulators to provide clarity on how these obligations should be reconciled,” the TikTok representative stated.

Meta Disputes Breach Allegations, Cites Ongoing Compliance Efforts

Meta contested the Commission’s preliminary conclusions, asserting that it has implemented changes to its content reporting, appeal processes, and data access tools to comply with the DSA since its enforcement. The company expressed confidence that its current measures meet EU legal requirements and noted ongoing negotiations with the EC. !-- wp:paragraph -->
“We disagree with any suggestion that we have breached the DSA, and we continue to negotiate with the European Commission on these matters. In the European Union, we have introduced changes to our content reporting options, appeals process, and data access tools since the DSA came into force and are confident that these solutions match what is required under the law in the EU,” a Meta spokesperson said.

Background: Investigations and Regulatory Framework

The investigations were initiated in early 2024 amid concerns about advertising transparency, data access for research, content moderation, and the protection of minors on TikTok. Meta was scrutinized following allegations that Facebook and Instagram violated rules applicable to large platforms, particularly regarding election integrity. !-- wp:paragraph --> The Digital Services Act is the EU’s comprehensive regulatory framework aimed at enhancing transparency, accountability, and consumer protection in digital services. It imposes stringent obligations on major platforms, including algorithmic transparency and risk mitigation measures. Breaches can incur penalties of up to 6% of a company’s global annual revenue. !-- wp:paragraph --> Both Meta and TikTok will have the opportunity to review the Commission’s investigation documents, formally respond to the findings, and commit to corrective actions. !-- wp:paragraph -->

FinOracleAI — Market View

The European Commission’s preliminary findings highlight significant compliance challenges for Meta and TikTok under the Digital Services Act. These issues underscore the increasing regulatory scrutiny of major social media platforms concerning transparency, user protection, and content moderation. !-- wp:paragraph -->
  • Opportunities: Enhanced transparency and streamlined data access could improve public trust and enable more robust academic research.
  • Risks: Prolonged regulatory disputes could lead to substantial fines and operational disruptions, impacting user engagement and revenue.
  • Potential revisions to platform design may be necessary to eliminate dark patterns and simplify user reporting mechanisms.
  • Regulatory clarity on reconciling data protection (GDPR) with transparency obligations (DSA) is critical for compliance strategies.
Impact: The findings signal a cautious outlook for Meta and TikTok as they navigate evolving EU digital regulations. Compliance efforts and regulatory resolutions will be key to maintaining market stability and user trust within the region. !-- wp:paragraph --> An investigation conducted by European Union regulators has concluded that Meta and TikTok have violated the Digital Services Act (DSA) rules governing transparency and data accessibility for researchers. The European Commission (EC) announced on Friday that preliminary findings show both companies failed to provide adequate access to public data as mandated by the legislation. !-- wp:paragraph --> The Commission criticized the procedures and tools implemented by Meta and TikTok as “burdensome,” which often results in researchers receiving incomplete or unreliable datasets. This limitation hampers the ability to study critical issues such as exposure of users, including minors, to illegal or harmful online content. !-- wp:paragraph -->

Meta Platforms Fall Short on Content Reporting and Appeal Mechanisms

The EC further identified breaches by Meta’s platforms, Instagram and Facebook, regarding obligations to provide EU users with straightforward methods to report illegal content. The platforms reportedly enforce multiple unnecessary steps before users can submit reports, employing so-called “dark patterns” — design techniques that manipulate user behavior to impede reporting. !-- wp:paragraph -->
“Such practices can be confusing and dissuading. Meta’s mechanisms to flag and remove illegal content may therefore be ineffective,” the European Commission stated.
In addition, the moderation appeal processes on both platforms were found to restrict EU residents from fully articulating or submitting evidence to support their appeals. This limitation undermines the effectiveness of content moderation appeals, as users cannot adequately challenge content decisions. !-- wp:paragraph -->

TikTok Responds to Findings Amid Regulatory Scrutiny

TikTok has defended its practices, highlighting substantial investments in data sharing and claiming to have granted nearly 1,000 research teams access to data through its research tools. A company spokesperson emphasized the challenge of reconciling the DSA’s data sharing requirements with data protection obligations under the GDPR, urging regulators to clarify how these frameworks should align. !-- wp:paragraph -->
“We are reviewing the European Commission’s findings, but requirements to ease data safeguards place the DSA and GDPR in direct tension. If it is not possible to fully comply with both, we urge regulators to provide clarity on how these obligations should be reconciled,” the TikTok representative stated.

Meta Disputes Breach Allegations, Cites Ongoing Compliance Efforts

Meta contested the Commission’s preliminary conclusions, asserting that it has implemented changes to its content reporting, appeal processes, and data access tools to comply with the DSA since its enforcement. The company expressed confidence that its current measures meet EU legal requirements and noted ongoing negotiations with the EC. !-- wp:paragraph -->
“We disagree with any suggestion that we have breached the DSA, and we continue to negotiate with the European Commission on these matters. In the European Union, we have introduced changes to our content reporting options, appeals process, and data access tools since the DSA came into force and are confident that these solutions match what is required under the law in the EU,” a Meta spokesperson said.

Background: Investigations and Regulatory Framework

The investigations were initiated in early 2024 amid concerns about advertising transparency, data access for research, content moderation, and the protection of minors on TikTok. Meta was scrutinized following allegations that Facebook and Instagram violated rules applicable to large platforms, particularly regarding election integrity. !-- wp:paragraph --> The Digital Services Act is the EU’s comprehensive regulatory framework aimed at enhancing transparency, accountability, and consumer protection in digital services. It imposes stringent obligations on major platforms, including algorithmic transparency and risk mitigation measures. Breaches can incur penalties of up to 6% of a company’s global annual revenue. !-- wp:paragraph --> Both Meta and TikTok will have the opportunity to review the Commission’s investigation documents, formally respond to the findings, and commit to corrective actions. !-- wp:paragraph -->

FinOracleAI — Market View

The European Commission’s preliminary findings highlight significant compliance challenges for Meta and TikTok under the Digital Services Act. These issues underscore the increasing regulatory scrutiny of major social media platforms concerning transparency, user protection, and content moderation. !-- wp:paragraph -->
  • Opportunities: Enhanced transparency and streamlined data access could improve public trust and enable more robust academic research.
  • Risks: Prolonged regulatory disputes could lead to substantial fines and operational disruptions, impacting user engagement and revenue.
  • Potential revisions to platform design may be necessary to eliminate dark patterns and simplify user reporting mechanisms.
  • Regulatory clarity on reconciling data protection (GDPR) with transparency obligations (DSA) is critical for compliance strategies.
Impact: The findings signal a cautious outlook for Meta and TikTok as they navigate evolving EU digital regulations. Compliance efforts and regulatory resolutions will be key to maintaining market stability and user trust within the region. !-- wp:paragraph -->

EU Investigation Reveals Transparency Breaches by Meta and TikTok

An investigation conducted by European Union regulators has concluded that Meta and TikTok have violated the Digital Services Act (DSA) rules governing transparency and data accessibility for researchers. The European Commission (EC) announced on Friday that preliminary findings show both companies failed to provide adequate access to public data as mandated by the legislation. !-- wp:paragraph --> The Commission criticized the procedures and tools implemented by Meta and TikTok as “burdensome,” which often results in researchers receiving incomplete or unreliable datasets. This limitation hampers the ability to study critical issues such as exposure of users, including minors, to illegal or harmful online content. !-- wp:paragraph -->

Meta Platforms Fall Short on Content Reporting and Appeal Mechanisms

The EC further identified breaches by Meta’s platforms, Instagram and Facebook, regarding obligations to provide EU users with straightforward methods to report illegal content. The platforms reportedly enforce multiple unnecessary steps before users can submit reports, employing so-called “dark patterns” — design techniques that manipulate user behavior to impede reporting. !-- wp:paragraph -->
“Such practices can be confusing and dissuading. Meta’s mechanisms to flag and remove illegal content may therefore be ineffective,” the European Commission stated.
In addition, the moderation appeal processes on both platforms were found to restrict EU residents from fully articulating or submitting evidence to support their appeals. This limitation undermines the effectiveness of content moderation appeals, as users cannot adequately challenge content decisions. !-- wp:paragraph -->

TikTok Responds to Findings Amid Regulatory Scrutiny

TikTok has defended its practices, highlighting substantial investments in data sharing and claiming to have granted nearly 1,000 research teams access to data through its research tools. A company spokesperson emphasized the challenge of reconciling the DSA’s data sharing requirements with data protection obligations under the GDPR, urging regulators to clarify how these frameworks should align. !-- wp:paragraph -->
“We are reviewing the European Commission’s findings, but requirements to ease data safeguards place the DSA and GDPR in direct tension. If it is not possible to fully comply with both, we urge regulators to provide clarity on how these obligations should be reconciled,” the TikTok representative stated.

Meta Disputes Breach Allegations, Cites Ongoing Compliance Efforts

Meta contested the Commission’s preliminary conclusions, asserting that it has implemented changes to its content reporting, appeal processes, and data access tools to comply with the DSA since its enforcement. The company expressed confidence that its current measures meet EU legal requirements and noted ongoing negotiations with the EC. !-- wp:paragraph -->
“We disagree with any suggestion that we have breached the DSA, and we continue to negotiate with the European Commission on these matters. In the European Union, we have introduced changes to our content reporting options, appeals process, and data access tools since the DSA came into force and are confident that these solutions match what is required under the law in the EU,” a Meta spokesperson said.

Background: Investigations and Regulatory Framework

The investigations were initiated in early 2024 amid concerns about advertising transparency, data access for research, content moderation, and the protection of minors on TikTok. Meta was scrutinized following allegations that Facebook and Instagram violated rules applicable to large platforms, particularly regarding election integrity. !-- wp:paragraph --> The Digital Services Act is the EU’s comprehensive regulatory framework aimed at enhancing transparency, accountability, and consumer protection in digital services. It imposes stringent obligations on major platforms, including algorithmic transparency and risk mitigation measures. Breaches can incur penalties of up to 6% of a company’s global annual revenue. !-- wp:paragraph --> Both Meta and TikTok will have the opportunity to review the Commission’s investigation documents, formally respond to the findings, and commit to corrective actions. !-- wp:paragraph -->

FinOracleAI — Market View

The European Commission’s preliminary findings highlight significant compliance challenges for Meta and TikTok under the Digital Services Act. These issues underscore the increasing regulatory scrutiny of major social media platforms concerning transparency, user protection, and content moderation. !-- wp:paragraph -->
  • Opportunities: Enhanced transparency and streamlined data access could improve public trust and enable more robust academic research.
  • Risks: Prolonged regulatory disputes could lead to substantial fines and operational disruptions, impacting user engagement and revenue.
  • Potential revisions to platform design may be necessary to eliminate dark patterns and simplify user reporting mechanisms.
  • Regulatory clarity on reconciling data protection (GDPR) with transparency obligations (DSA) is critical for compliance strategies.
Impact: The findings signal a cautious outlook for Meta and TikTok as they navigate evolving EU digital regulations. Compliance efforts and regulatory resolutions will be key to maintaining market stability and user trust within the region. !-- wp:paragraph -->
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Lilu Anderson is a technology writer and analyst with over 12 years of experience in the tech industry. A graduate of Stanford University with a degree in Computer Science, Lilu specializes in emerging technologies, software development, and cybersecurity. Her work has been published in renowned tech publications such as Wired, TechCrunch, and Ars Technica. Lilu’s articles are known for their detailed research, clear articulation, and insightful analysis, making them valuable to readers seeking reliable and up-to-date information on technology trends. She actively stays abreast of the latest advancements and regularly participates in industry conferences and tech meetups. With a strong reputation for expertise, authoritativeness, and trustworthiness, Lilu Anderson continues to deliver high-quality content that helps readers understand and navigate the fast-paced world of technology.