The European Union regulators announced on Thursday that they will investigate Meta Platforms’ social media sites, Facebook and Instagram, for potential violations of EU online content rules concerning child safety. This probe could result in substantial fines for the tech giant.

The investigation is rooted in the European Union’s Digital Services Act (DSA), which mandates that tech companies intensify their efforts to combat illegal and harmful content on their platforms. 

Enacted last year, the DSA aims to hold tech companies accountable for the content they host and ensure safer online environments.

The European Commission has expressed concerns that Facebook and Instagram have not sufficiently mitigated risks to children. These concerns were based on a risk assessment report submitted by Meta in September. 

The Commission stated, “The systems of both Facebook and Instagram, including their algorithms, may stimulate behavioral addictions in children, as well as create so-called ‘rabbit-hole effects.'”

The term ‘rabbit-hole effects’ refers to algorithms’ tendency to lead users, particularly children, into consuming more extreme or inappropriate content over time. 

The Commission is scrutinizing Meta’s age-assurance and verification methods, questioning their effectiveness in preventing children from accessing inappropriate content.

Meta is already facing scrutiny from EU regulators over issues related to election disinformation, a significant concern as the European Parliament elections approach next month. 

Meta’s potential breaches of the DSA could lead to fines up to 6% of the company’s annual global turnover, a considerable financial penalty reflecting the seriousness of the alleged violations.