European consumers are suing Google, Meta, and TikTok over fraudulent content
The European Consumer Organisation (BEUC), together with 29 industry associations from 27 EU countries, has filed formal complaints with the European Commission and national regulators against tech giants Alphabet (Google), Meta Platforms, and TikTok. The companies are accused of failing to protect European users from financial manipulation and deceptive advertising.
This was reported by Reuters.
The complaint was filed under the European Digital Services Act (DSA), which requires large online platforms to promptly remove harmful and illegal content. BEUC Director General Agustín Reyna emphasized that the platforms are not being proactive and sometimes ignore direct reports from users, causing Europeans to suffer financial losses every day.
Advocates note that the problem is systemic, as most reports of suspicious content go unaddressed. Between December of last year and March of this year, activists filed complaints about nearly 900 advertisements that directly violated European law. However, social media platforms removed only 27% of the reported fraudulent posts, while 52% of the reports were completely rejected or ignored by automated moderation systems.
At the same time, Big Tech representatives categorically reject these accusations. Google stated that its algorithms automatically block over 99% of violations before the ads even appear in the feed. Meta also noted that it is actively investing in cutting-edge AI tools, thanks to which it removed 159 million fraudulent ads last year, with 92% of them removed before users even filed complaints. TikTok’s press office has not yet commented on the situation. Human rights advocates are calling on regulators to conduct a thorough investigation, as under DSA rules, the maximum fine for such violations can reach up to 6% of a company’s annual global revenue.
Meta CEO and billionaire Mark Zuckerberg has decided to shut down one of the company’s largest and most costly projects—the Horizon Worlds metaverse—which has incurred losses of $80 billion. Support for the VR platform on Quest devices will end by mid-June, and the app will disappear from the app store by the end of March.
In addition, Meta Platforms Inc. announced a price increase for its Quest VR devices due to a significant rise in production costs for high-performance equipment. The changes took effect on April 19 and will affect markets in the U.S., the U.K., Europe, and Japan.