Tech giants Google, Meta, and TikTok are facing European scrutiny for their alleged role in a growing number of financial scams targeting users.
The three companies are accused of failing to proactively remove fraudulent ads from their platforms and notify users in an appropriate manner, outlined in complaints filed to regulators by the European Consumer Organisation (BEUC) and 29 of its members in 27 European countries, Reuters reported.
The consumer group flagged 900 ads that they deemed violated EU laws, but said that only 27 percent of those ads were removed by platforms. More than half of the reports were rejected or ignored.
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The complaints were submitted under the EU's Digital Services Act, and regulators could levy hefty fines if the companies are found in violation.
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"We strictly enforce our ad policies, blocking over 99% of violating ads before they ever run. Our teams constantly update these defenses to stay ahead of scammers and protect people," a Google spokesperson said in comment to the press.
"We invest in advanced AI, tools, and partnerships to stop them. Last year we found and removed over 159 million scam ads, 92% before anyone reported them to us," Meta responded.
Meta was recently accused of making tens of millions of dollars off of scam ads targeting older Americans and Medicare recipients. Last year, a Reuters investigation found that Meta made billions from fraudulent ads, also referred to as "high risk" advertising. AI-powered scams are proliferating across platforms, including Google-owned YouTube and TikTok.
The Digital Services Act — a broad set of laws that impose more transparent reporting and consumer protections on online service providers — went into effect in 2022. Since then, the European Union has initiated multiple inquiries against large tech companies, including a recent Google antitrust probe, an investigation into Meta's child safety policies, and a sweeping audit of TikTok's algorithm and data policies.