EU ramps up pressure on Meta over child safety concerns

Meta Platforms is facing fresh regulatory pressure in Europe as the European Union prepares to escalate its investigation into whether Facebook and Instagram use design features that are addictive to children.

The developments place Meta at the centre of two major stories at once.

In Europe, the company is facing closer scrutiny over the impact of its platforms on minors.

In India, it is deepening its push into digital payments and consumer finance.

EU prepares next step in Meta probe

The EU’s executive arm is preparing preliminary findings in its investigation into Meta unde the Digital Services Act.

The probe focuses on whether Facebook and Instagram use exploitative design features that keep younger users engaged for long periods.

The investigation was opened in May 2024 under the Digital Services Act, the bloc’s landmark online safety law.

At the time, regulators flagged concerns that Meta’s platforms could expose children to a so-called “rabbit-hole effect”, where recommendation systems keep users locked into a constant stream of content.

The latest step would deepen that probe.

Bloomberg News reported on Tuesday that the Commission is set to ramp up its investigation into whether Meta’s products are addictive to children.

The child-safety case is not Meta’s only problem in Europe.

In April, the Commission said it had preliminarily found Meta in breach of the Digital Services Act for failing to prevent children under 13 from accessing Facebook and Instagram.

According to the Commission, Meta’s current safeguards do not effectively stop underage users from joining the platforms or ensure their quick removal if they do gain access.

Child safety becomes a bigger regulatory battleground

The EU’s action reflects a wider push by governments to tighten rules around children’s use of social media.

Regulators are increasingly focused on platform design, age verification, and the exposure of minors to harmful content.

Under the Digital Services Act process, preliminary findings are a formal step but not a final ruling.

Meta would be able to respond to the allegations and propose remedies.

If the company ultimately fails to address the Commission’s concerns, it could face a fine of up to 6% of its annual global revenue under the law.

The scrutiny also comes amid a broader global backlash against large social media companies over the effect of their products on younger users.

Policymakers in several countries have been debating new restrictions on children’s access to platforms and tougher obligations for companies to design safer services.

Meta turns to India with $900 million CRED investment

At the same time, Meta is making a significant move in India’s fintech market.

On Monday, the company said it will invest $900 million in Bengaluru-based startup CRED as part of the company’s Series H funding round.

The transaction gives Meta a minority stake of about 20% in the fintech firm.

CRED said the funding round will raise ₹8,550 crore and value the company at ₹43,239 crore on a post-money basis.

The round includes a mix of primary and secondary share purchases.

Meta will join CRED’s cap table as a minority investor and will not gain access to customer data, the company said.

The two developments show Meta navigating very different priorities across markets.