EU Consumer Protection Organization Sues Meta, Google, TikTok: Allowing Investment Scam Ads to Spread, Reporting Effect Is Limited

The European consumer organization BEUC, together with 27 member countries, has officially filed a complaint with the European Union against Google, Meta, and TikTok, accusing them of failing to effectively stop the spread of financial scam advertisements, in violation of the Digital Services Act.

EU consumer protection organizations officially sue Google, Meta, and TikTok

BEUC and 29 member organizations from 27 countries have recently formally lodged a complaint with the European Commission and regulators in the member states, accusing Google, Meta, and TikTok of long failing to effectively block the spread of financial scam advertisements, exposing large numbers of European users to investment fraud and cryptocurrency traps.

The complaint is filed under the EU Digital Services Act (Digital Services Act, DSA). The law requires large online platforms to take more proactive action against illegal and harmful content, including scam ads, fake investment activities, and misleading financial information.

BEUC points out that even when some scam advertisements are reported by users, the relevant content continues to be exposed on the platforms, allowing scam groups to keep reaching new victims. Many victims ultimately lose hundreds to thousands of euros, and some cases even involve cross-border financial fraud and cryptocurrency investment traps.

BEUC strongly criticizes platforms for allowing scams to continue to spread

BEUC Secretary-General Agustin Reyna said that Google, Meta, and TikTok are too slow in dealing with financial scam advertisements and also lack adequate proactive blocking measures.

He pointed out that these platforms do not intercept scam ads promptly at the initial stage of being listed; even after receiving reports, their follow-up processing remains limited, causing scam content to continue reaching millions of European users.

Image source: Table.Briefings BEUC Secretary-General Agustin Reyna

Agustin Reyna believes the problem has now extended to the advertising and recommendation mechanisms of major platforms, with scam groups using algorithms and targeted delivery tools to reach potential victims on a large scale. As social media platforms increasingly rely on advertising recommendation systems for their business models, the speed at which financial scams spread is rising in tandem.

BEUC’s action is also regarded as one of the key cases for the EU to officially test the enforcement strength of the Digital Services Act. If regulators ultimately determine that the platforms are in violation, the relevant companies could face hefty fines and stricter requirements for content governance.

Google and Meta emphasize they have invested heavily to combat scams

In response to the allegations, both Google and Meta have publicly denied the claims.

• A Google spokesperson said that BEUC’s complaint distorts the company’s mechanisms for handling scam ads and emphasized that Google has already intercepted more than 99% of non-compliant content before ads go live.
• Meta said that last year it removed more than 159 million scam ads, about 92% of which were proactively taken down before user reports. Meta also emphasized that the company continues to invest in AI technology, automation tools, and cross-industry cooperation, with the goal of reducing the speed at which scam content spreads.

In recent years, major technology companies have made scam content governance one of their core risk areas. However, European regulators and consumer groups believe there is still a clear gap between the data platforms disclose and actual user experience.

Tensions in AI, payments, and advertising regulation continue to escalate

As this incident unfolds, the technology industries in Europe and the United States are facing mounting regulatory pressure regarding AI, semiconductors, and digital finance.

Several U.S. tech companies recently announced an investment of 125 million US dollars to support UCLA’s semiconductor research center. Participating companies include Broadcom, Meta, Applied Materials, GlobalFoundries, and Synopsys. The research directions include AI chips, manufacturing equipment, and cultivating semiconductor talent.

On the other hand, it has also been reported that the EU may consider delaying some sanctions against certain Chinese semiconductor suppliers, with reasons including that the European automotive industry has not yet found alternative supply chains and that the market is concerned about potential chip shortages in the short term.

Market participants believe that AI, advertising algorithms, payment systems, and cryptocurrency services are gradually converging, and the scope of responsibility for large technology platforms is also continuing to expand. The EU’s complaint case against Google, Meta, and TikTok could become an important indicator for future global digital platform regulation.

This article is generated by Crypto Agent consolidating information from various parties, reviewed and edited by “Crypto City.” It is still in the training stage, and may contain logical bias or information errors. The content is for reference only and should not be considered investment advice.