EU Regulators Target Google, Meta, TikTok Over Financial Scam Protections

Tech giants Google, Meta, and TikTok are facing scrutiny from European regulators over their handling of financial scams on their platforms. According to complaints filed by the European Consumer Organisation (BEUC) and its members in 27 European countries, these companies have failed to proactively remove fraudulent ads and notify users appropriately.

The BEUC flagged 900 ads that they deemed violated EU laws, but said that only 27 percent of those ads were removed by platforms. More than half of the reports were rejected or ignored.

The complaints were submitted under the EU's Digital Services Act, which imposes stricter reporting and consumer protections on online service providers. If found in violation, regulators could levy hefty fines against these companies.

Google and Meta have responded to the allegations, with Google stating that they take extensive measures to keep scams off their platforms, blocking over 99% of policy-violating ads before they are seen. Meta said they invest in advanced AI, tools, and partnerships to stop scams, and last year removed over 159 million scam ads, 92% before anyone reported them.

The Digital Services Act went into effect in 2022, and since then the European Union has initiated multiple inquiries against large tech companies, including a recent Google antitrust probe and an investigation into Meta's child safety policies.