The EU is escalating its investigation into Meta, preparing preliminary findings that accuse Facebook and Instagram of using exploitative design to keep children hooked through a “rabbit-hole effect,” according to people familiar with the matter. The European Commission opened the probe in May 2024 under the Digital Services Act, and the preliminary findings mark the second formal step, after which Meta can defend itself and propose remedies before any penalty. A failure to satisfy regulators could expose Meta to a fine of up to 6% of its annual global sales, a level the DSA has so far reserved for major cases, including a €200M penalty against Temu last month and a €120M fine against X in December. The escalation comes amid a global push to protect minors online, with the EU weighing Australia-style social-media restrictions and Meta facing thousands of US addiction lawsuits.
