EU Probe on Under-13 Accounts, Australia Proposes 2.25% Digital Levy
The EU issued preliminary findings that Meta’s Facebook and Instagram lack age controls to block under-13 users, risking fines up to 6% of global sales under the Digital Services Act. Australia’s proposal for a 2.25% levy on digital platform revenue could impose up to AUD250 million in charges on Meta.
1. EU Probe Intensifies
The European Commission’s preliminary findings conclude that Meta’s Facebook and Instagram fail to verify users’ ages effectively, allowing under-13s to create accounts. This escalates a probe initiated in May 2024 and exposes Meta to fines of up to 6% of its global annual sales under the Digital Services Act.
2. Meta’s Defense and Engagement
Meta disputes the findings, stating existing safeguards detect underage accounts and pledging to work constructively with regulators. The company argues that age verification is an industry-wide issue requiring collaborative solutions rather than unilateral enforcement.
3. Australian Revenue Levy Proposal
Australia has proposed a 2.25% revenue levy on major digital platforms’ Australian earnings to support news organizations, estimating AUD200–250 million in annual proceeds. Meta and other tech firms have criticized the plan as a disguised tax and are exploring commercial deals with publishers.
4. Implications for Meta
Combined regulatory pressures could increase Meta’s compliance costs and financial liabilities, prompting investments in more robust age-verification systems and potential adjustments to global revenue strategies. The outcomes may influence Meta’s profitability and operational priorities in key markets.