The European Commission has issued preliminary findings that Instagram and Facebook violate the Digital Services Act through features designed to maximize compulsive use, including infinite scroll, autoplay, and personalized recommendation loops. The investigation, which has run for two years, now enters formal enforcement proceedings. If Meta is found in breach, the fine can reach 6% of the company's global annual revenue.
Meta's 2024 annual revenue was approximately $165 billion, which puts the maximum fine near $9.9 billion. That figure alone is manageable for a company with Meta's cash generation, but a binding DSA ruling would force product changes on two of the world's highest-engagement platforms, threatening the ad-impression volumes that drive nearly all of Meta's revenue. Investors holding META shares should watch whether the Commission moves toward a final decision or accepts behavioral commitments instead.
Meta's formal response deadline to the European Commission (exact date not yet published, typically 4 weeks from preliminary findings). Next Meta earnings call, expected late July 2025.
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