Meta faces EU bill risking fines up to 6% of sales

The European Union has proposed the EU KIDS Act, which would block social media access for children under 13 and mandate parental controls for users between 13 and 15 years old. According to a report by Reuters, the legislative proposal targets profiling algorithms, infinite scrolling, reward-based engagement and unsolicited contact. It would also require AI companions to be disabled by default for younger users.

Companies that fail to comply could face regulatory penalties of up to 6% of their annual global sales. The draft proposal still requires formal negotiations and approval from European Union member states and the European Parliament before taking effect as law.

The regulatory scrutiny arrives as Meta Platforms directs substantial capital toward AI infrastructure and algorithmic recommendation engines. Meta recorded $31.08 billion in capital expenditures in its most recent quarter, representing roughly 51.1% of its total revenue.

Meta does not disclose financial metrics or sales generated by users under the age of 18. The potential financial effect extends beyond lost user accounts, as compliance could force redesigns of recommendation systems, advertising models and AI companion features across the European market.