#tech policy

EU Justice Commissioner Michael McGrath announced that the European Commission plans to propose new legislation by the end of this year to enhance online consumer protection, granting itself powers to fine large tech companies and smaller online merchants for failing to protect consumers, especially children, from deceptive design patterns and addictive features. This regulatory push could fundamentally change how tech companies design user interfaces and business models, forcing them to prioritize consumer welfare over engagement metrics. It also signals a broader trend of governments using financial penalties to enforce online safety, potentially setting a global precedent. The new rules target dark patterns, addictive design, and subscription traps. The EU also seeks enforcement powers over cross-border systemic cases, applicable to both large platforms covered by existing digital rules and smaller online merchants and game developers.

The European Commission has issued preliminary findings that Meta's Facebook and Instagram violate the Digital Services Act due to addictive design features such as infinite scroll, autoplay, and personalized recommendations. This marks one of the most significant regulatory actions against addictive design in social media, potentially setting a precedent for how platforms must redesign their interfaces to protect user well-being. If finalized, the fine of up to $12 billion (6% of global revenue) would be among the largest under the DSA. The EU criticizes Meta's current time-limiting tools as ineffective and demands redesigns including disabling these features by default, imposing effective screen breaks, and reducing engagement-driven algorithms. The fine is based on preliminary findings and Meta has the right to respond before a final decision.