In response to the rapid increase in fraud on social media platforms facilitated by advancements in AI technology, Brussels is tightening regulations.
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European institutions have recently reached an agreement on a legislative text designed to enforce a shared responsibility model to curb online scams, which have become increasingly profitable for cybercriminals.
Social Networks to Play a Role in Compensating Fraud Victims
The compromise between the European Parliament and the Council is based on a straightforward principle where each party involved must be accountable for their role in the fraud chain. For instance, if a fraudster impersonates a user to divert funds, or if a transaction is completed without the user’s consent, banks will be required to cover the reimbursement.
However, the situation changes when the scam originates on a social media platform. Under the new rules, platforms will have to reimburse banks if it can be proven that they did not remove reported fraudulent content in a timely manner.
This policy particularly targets American tech giants whose moderation efforts have failed to stop the spread of deceptive advertisements, which are projected to generate $16 billion for Meta by 2024.
This move towards greater accountability reflects a growing concern among legislators that current protections are inadequate to prevent scams that have become all too common. The European Union aims to secure a link in the chain that previously lacked a clear financial obligation.
Alongside this legislative text, EU lawmakers are also proposing to raise the minimum age for accessing social media to 16, as minors are among the most susceptible to online manipulation.
A New Source of Tension with the United States?
This regulatory tightening follows the Digital Services Act (DSA) and the Digital Markets Act (DMA), which were previously adopted to address illegal content and anticompetitive practices in the digital business sector.
In Washington, however, these measures are increasingly seen as targeting American companies. The White House, supported by leaders from Meta, Google, and Apple, has been actively engaging in diplomatic discussions to counter what it views as a European offensive.
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Former President Donald Trump has even accused the EU of deliberately penalizing American firms, while Commerce Secretary Howard Lutnick has threatened to maintain a 50% tariff on European steel and aluminum if Brussels does not moderate its stance on digital regulation.
This tension highlights a broader conflict where Europe seeks to establish independent and protective regulation, while the United States champions the competitiveness of its tech giants. In this struggle, social media platforms become strategic battlegrounds where both citizen protection and the balance of economic relations between the continents are at stake.
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Samantha Klein is a seasoned tech journalist with a sharp focus on Apple and mobile ecosystems. With over a decade of experience, she brings insightful commentary and deep technical understanding to the fast-evolving world of consumer technology.