Client Challenge: Addressing Key Business Obstacles

The European Commission announced today it will launch a formal investigation into Meta’s handling of political advertising ahead of the upcoming European Parliament elections. The probe comes amid growing concerns that the tech giant isn’t complying with the Digital Services Act (DSA), the EU’s landmark content moderation law that took effect last year.

According to officials familiar with the matter, regulators are particularly troubled by Meta’s alleged failure to provide adequate transparency around political ads on Facebook and Instagram. The Commission cited several instances where campaign messages weren’t properly labeled or where targeting information was incomplete, potentially misleading voters about who was behind certain political messaging.

“Free and fair elections are the cornerstone of democracy,” said Margrethe Vestager, Executive Vice President of the European Commission. “We cannot allow social media platforms to undermine electoral integrity through opaque advertising practices. The DSA exists precisely to ensure transparency and accountability in the digital space.”

Meta, which owns Facebook, Instagram and WhatsApp, responded to the investigation announcement by defending its political advertising policies. A company spokesperson said Meta has “invested significantly in election integrity” and maintains “the most comprehensive system for political ad transparency of any major tech platform.”

The investigation represents the first major test of the DSA’s provisions specifically related to elections. Under the law, very large online platforms like Meta’s services must maintain public repositories of political advertisements, clearly label such content, and provide detailed information about targeting parameters and spending.

Political analysts note the timing is particularly significant with European Parliament elections scheduled for June, when all 27 EU member states will vote to select representatives. The elections will shape EU policy for the next five years during a period of geopolitical tension and economic uncertainty.

“This investigation sends a strong signal to all tech platforms operating in Europe,” said Jan Penfrat, a digital rights advocate at European Digital Rights. “The Commission is showing it’s serious about enforcing the DSA, especially when it comes to protecting democratic processes.”

The formal investigation could result in significant penalties if Meta is found in violation of DSA requirements. The law allows for fines of up to 6% of a company’s global annual revenue – which in Meta’s case could amount to billions of euros.

Industry observers point out that Meta has faced similar scrutiny before. In 2018, the Cambridge Analytica scandal revealed how political consulting firms could harvest user data for targeted political advertising, leading to congressional hearings and regulatory changes in multiple countries.

The Commission has given Meta 30 days to provide preliminary information and documentation related to its political advertising practices. The investigation is expected to examine both technical compliance with the DSA and broader questions about how Meta’s algorithms amplify or suppress political content.

Digital policy experts note that this case could establish important precedents for how the DSA is enforced. “What happens with Meta will influence how other platforms approach political advertising compliance,” said Clara Herrmann, technology policy researcher at the Berlin-based Digital Society Institute. “This is about setting standards for democratic discourse in the digital age.”

The investigation comes amid broader global concerns about the impact of social media on elections. Similar regulatory efforts are underway in the United Kingdom, Australia, and Brazil, though the EU’s DSA is widely considered the most comprehensive regulatory framework addressing online content moderation and digital advertising.

Meta’s shares dipped slightly following the announcement, reflecting investor concerns about potential regulatory impacts on the company’s advertising business, which generates the vast majority of its revenue.

The Commission indicated that its investigation would proceed with urgency given the proximity to the European elections, with preliminary findings expected within three months.