European regulators said Meta can no longer rely on its current age‑verification system, finding it ineffective at blocking users under 13 from Instagram and Facebook. The EU’s Digital Services Act requires platforms to enforce age limits, and Meta’s tool demands up to seven steps to report a minor.

Evidence shows roughly 10‑12% of children under 13 are accessing the services, a figure that raises alarm in Brussels. The Commission’s preliminary ruling warns that failure to act could trigger a fine of up to 6% of Meta’s global revenue, a penalty rarely imposed but potentially huge.

Meta disputes the findings, labeling age verification a broader industry challenge, yet it promises new technologies will roll out soon. Meanwhile, regulators in Spain, France and Denmark are tightening rules, and the EU is exploring fresh verification tools.

The case underscores how stricter child‑safety enforcement could reshape Meta’s compliance strategy and cost structure, affecting investors’ perception of the company’s regulatory risk profile.