- The European Consumer Organization and its 29 member institutions in 27 European countries have officially filed a joint complaint, accusing major global online platforms of failing to effectively enforce the Digital Services Act, highlighting systemic lapses in curbing online financial scam advertisements.
- As of the close of the U.S. stock market on Thursday, Google's stock price fell by 0.37%, while Meta Platforms saw a slight increase of 0.38%, reflecting the cautious attitude of the capital market towards the current regulatory litigation risks.
- If the European Commission ultimately determines that these platforms have violated the core provisions of the Digital Services Act, the compliant tech giants could face administrative fines of up to 6% of their global annual revenue.
Regulatory Constraints and Enforcement Pathways
According to documents submitted by the European Consumer Organization to the European Commission and national regulatory bodies, the core legal basis for this action is the comprehensively implemented Digital Services Act of the EU. This legislation imposes stricter statutory obligations on very large online platforms with over ten million monthly active users, requiring them to take proactive measures to identify and remove illegal and harmful content on their platforms. The plaintiffs pointed out that these tech giants have been inefficient in preventing the spread of financial scam advertisements, and even after receiving compliance notifications from users or institutions, they have failed to promptly take down or intercept actions, leaving millions of European consumers continuously exposed to financial loss risks.
Market Response and Defense Stance
In the capital market, the price trends of major assets showed some divergence and restraint. Alphabet, Google's parent company, saw its stock price under pressure during regular trading hours, ultimately recording a slight decline of 0.37%, while Meta Platforms' stock price recorded a slight increase of 0.38% amid fluctuations. In response to this wave of collective lawsuits, both Google and Meta Platforms promptly issued rebuttals. Both companies released public statements asserting that they have deployed high-density automated review systems and human review teams internally, and have continuously invested substantial resources to identify and intercept potential fraudulent financial advertisements, aiming to fully protect users' financial security.
Financial Reassessment and Fine Expectations
Analysts believe that although the current immediate price fluctuations are relatively mild, in the long term, the rising costs of compliance governance and potential judicial litigation may marginally drag on the non-operating expenses of the relevant companies. If European regulators choose to adopt a more punitive enforcement attitude, the valuation center of the global digital advertising industry may face a phase of reassessment. If core inflation rebounds or macroeconomic growth slows in the future, these increased compliance costs may further compress the operating profit margins of online platforms.
