Meta Platforms, the parent company of Facebook and Instagram, is facing one of its toughest regulatory challenges yet as the European Commission formally accuses it of breaching the EU’s Digital Services Act (DSA). The charges focus on the company’s alleged failure to protect users from illegal and harmful content across its platforms — a case that could reshape how global tech giants operate within Europe’s increasingly strict digital ecosystem.

In a statement issued on Friday, the European Commission said Meta “failed to provide effective systems that allow users to flag and challenge illegal content,” such as hate speech, extremist material, or child exploitation posts. Regulators also accused Meta of using “dark patterns” — subtle interface designs that make it harder for users to report or manage exposure to harmful content — a practice explicitly banned under the DSA.

EU Says Meta’s Systems Undermine User Protection

The Commission’s preliminary findings describe Meta’s user-reporting tools as complex and inconsistent, making it difficult for individuals to take action when encountering illegal content. Under the DSA, large platforms designated as “very large online platforms” must ensure transparency, safety, and effective complaint mechanisms for users in the EU.

Investigators also highlighted concerns about the lack of transparency surrounding Meta’s moderation process. Users reportedly receive limited information when their complaints are reviewed or rejected, leaving many unaware of how content decisions are made. The EU contends that such practices fail to meet the DSA’s requirements for fairness and accountability.

Additionally, regulators criticized Meta for restricting access to data for independent researchers studying the social impact of its platforms, particularly in relation to misinformation, mental health, and child safety. These restrictions, according to the Commission, hinder the ability to evaluate systemic risks — one of the central pillars of the DSA.

If confirmed, Meta could face penalties of up to 6% of its global annual revenue, which based on 2024 earnings, could amount to more than $7.5 billion.

Meta Pushes Back, Citing Compliance Efforts

Meta has strongly rejected the allegations, insisting it complies with European law. A company spokesperson said Meta “has robust systems in place to detect and remove illegal content” and continues to collaborate closely with EU authorities to strengthen its safety tools. The company noted recent efforts to enhance transparency, including regular reports on content removals and automated moderation improvements.

Despite these assurances, analysts view the case as a pivotal test of the DSA’s enforcement power. If the European Commission confirms the charges, Meta may be forced to redesign parts of its platform to meet EU standards, potentially increasing operational costs and compliance burdens.

Europe’s New Digital Order

The case marks one of the first major enforcement actions under the Digital Services Act, which came into effect in early 2024. The legislation aims to hold digital platforms accountable for content shared on their services, requiring them to mitigate risks, ensure child protection, and disclose how recommendation algorithms work.

For Meta, the timing is particularly sensitive. The company continues to face global scrutiny over misinformation, mental health risks, and its business practices, even as it invests heavily in artificial intelligence and the metaverse. European regulators, meanwhile, are positioning the DSA as a model for responsible digital governance — one that could inspire similar frameworks in other regions.

Compliance Will Define Meta’s Future

The European Commission will now evaluate Meta’s response before making a final decision, a process that could take several months. Should the company be found guilty, the consequences could extend beyond financial penalties, forcing Meta to overhaul its user interface, moderation systems, and data access policies.

More broadly, the case signals a turning point in how Europe manages Big Tech. Regulators are no longer reacting to crises but proactively shaping digital accountability. For Meta, long-term success in Europe will depend not on expansion or innovation alone, but on its ability to operate transparently within a new era of digital regulation.