EU accepts X's DSA corrective measures, Meta faces trial

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Reviewed by
Radhika SScanX News Team
Key Highlights

The European Commission has accepted X's corrective measures to terminate breaches of the Digital Services Act (DSA), concluding proceedings concerning the platform's compliance with the EU's digital regulations. Separately, the Commission has preliminarily found Meta in breach of the DSA regarding the addictive design of Instagram and Facebook, targeting features such as infinite scroll, autoplay, push notifications, and highly personalised recommender systems. If confirmed, Meta could face a fine capped at 6% of its total worldwide annual turnover.

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The European Commission has accepted X's corrective measures to terminate breaches of the Digital Services Act (DSA), concluding proceedings concerning the platform's compliance with the EU's digital regulations. This acceptance follows a review of the actions taken by X to address the Commission's concerns. Separately, the Commission has preliminarily found Meta in breach of the DSA regarding the addictive design of Instagram and Facebook, targeting features such as infinite scroll, autoplay, push notifications, and highly personalised recommender systems.

If confirmed, Meta could face a fine capped at 6% of its total worldwide annual turnover. The Commission determined that Meta must implement design changes to both platforms, including disabling autoplay and infinite scroll by default, implementing effective screen time breaks, and adjusting the recommender system to be less engagement-oriented. Awareness-raising measures, such as links to mental health resources, were found insufficient to mitigate the risks of addictive design.

Risk Mitigation Failures

Evidence suggests that Meta's current measures to mitigate these risks are ineffective. Time management tools on Instagram and Facebook, including those enabled by default for teenagers, can be easily dismissed and do not result in meaningful usage reduction. Parental controls are deemed inefficient as they require significant technical expertise and time from guardians to be effective.

Investigation Background

These preliminary findings are part of formal proceedings launched on 16 May 2024 to investigate Meta's compliance with the DSA. The investigation analysed Meta's risk assessment reports, internal data, and responses to information requests. It also included a review of scientific research and expert interviews. Separate preliminary findings regarding age assurance measures for minors below 13 years old were adopted on 29 April 2026.

Aspect Finding
Breach Digital Services Act (DSA)
Key Features Infinite scroll, autoplay, push notifications, personalised recommendations
Affected Group Minors and vulnerable adults
Potential Fine Up to 6% of total worldwide annual turnover
Investigation Start 16 May 2024

How will Meta's potential requirement to disable infinite scroll and autoplay impact user engagement metrics and advertising revenue?

Will the European Commission's preliminary findings against Meta trigger similar investigations into addictive design features on other major social media platforms?

What specific technical changes will Meta need to implement to make its recommender systems less engagement-oriented while maintaining user satisfaction?

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BlackRock leads $12 billion financing for new Meta data centers in Texas

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Reviewed by
Shriram SScanX News Team
Key Highlights

BlackRock has led a $12 billion financing package for new Meta data centers in Texas, aiming to support the expansion of AI infrastructure. This major investment highlights the increasing demand for data processing capabilities and the strategic partnership between finance and technology sectors.

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BlackRock has spearheaded a $12 billion financing arrangement to fund the development of new data centers for Meta in Texas. This significant financial commitment aims to bolster the infrastructure required for expanding artificial intelligence capabilities. The deal reflects the increasing necessity for robust data processing facilities to support advanced technological operations.

The financing package, one of the largest of its kind, will facilitate the construction of state-of-the-art facilities. These data centers are critical for handling the immense computational loads generated by modern AI applications. The investment signals strong confidence in the long-term growth prospects of the digital infrastructure sector.

Strategic Investment in AI Infrastructure

The collaboration between BlackRock and Meta highlights a trend where financial giants directly fund the physical backbone of the tech industry. By securing this capital, Meta ensures it has the necessary resources to scale its operations efficiently. The focus on Texas as a location leverages the state's favorable energy and regulatory environment.

Key Financial Details

Aspect Details
Lead Arranger BlackRock
Total Financing $12 billion
Purpose New data centers
Location Texas

This move is expected to have ripple effects across the technology and real estate sectors. It demonstrates the critical role of debt financing in accelerating the deployment of next-generation digital infrastructure. The project is poised to create numerous jobs and stimulate local economic activity in the region.

Will this massive $12 billion debt commitment prompt other tech giants to seek similar financing models for their AI infrastructure?

How will this influx of capital impact the existing power grid capacity and energy prices in Texas?

Could this deal trigger a wave of consolidation among data center REITs as institutional investors increase direct exposure?

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