The European Commission has released preliminary findings accusing Meta’s Facebook and Instagram of potentially violating the Digital Services Act due to features like infinite scroll, autoplay, push notifications, and highly personalized recommender systems that may harm users’ physical and mental wellbeing, especially minors and vulnerable adults.

Meta must implement changes such as disabling addictive features by default and strengthening safeguards, with penalties up to 6% of global annual revenue if it fails to comply.

Meta counters that it has already taken steps to protect teens, citing Teen Accounts with parental controls, night-time blocking, and a 15-minute daily screen-time cap.

The accompanying FAQ outlines the technologies involved, the regulatory impact on Meta’s AI strategy, and the trend toward ethical AI and greater oversight.

Beyond the EU action, Meta has pursued diversification into VR and AI, signaling a strategic pivot amid regulatory pressure, including potential data-center leasing to other AI firms.

This is an ongoing, breaking news story with further updates anticipated.

For businesses using AI for personalization, the case underscores balancing monetization with regulatory risk and exploring opportunities in AI auditing, ethical AI consulting, and user-centric design to demonstrate compliance.

The EU’s preliminary injunctive measures stem from a Digital Services Act investigation opened in May 2024, with regulators also scrutinizing other platforms like TikTok.

The investigation began in 2024, reflecting broader debates on youth safety and platform design across regions.

Related tech updates appear in the coverage, including Instagram’s Muse AI concerns about third-party use of user images and broader industry context around devices and audio features.

Looking ahead, regulators may push for regulated AI ecosystems where safety is prioritized alongside profits, with competition from compliant alternatives and a push for regular AI impact assessments to build trust.

CNBC notes its role in delivering real-time financial and business news and analysis as part of the coverage.