The European Commission has issued a warning to Meta Platforms after preliminary findings suggest the company’s Instagram and Facebook feeds may breach the Digital Services Act. Regulators say the endless scrolling and autoplay features create addictive design that could harm children’s physical and mental wellbeing. The warning follows a March US court decision that found Meta’s platforms are intentionally addictive to minors.

Meta rejected the Commission’s conclusions, arguing it has taken substantial steps to protect teens. The EU said it could impose a penalty of up to 6% of global turnover and calls for disabling autoplay, infinite scroll, and stronger screen‑time controls. The Commission’s senior tech chief, Henna Virkkunen, said protecting Europeans’ health must rank above platform profit.

For investors, the potential fine and forced design changes could weigh on Meta’s valuation and reshape advertising dynamics. Broad EU enforcement of the Digital Services Act signals a tightening regulatory environment that may prompt other tech firms to pre‑emptively adjust policies. The outcome will influence how quickly Meta can regain market confidence amid growing scrutiny.