European Commission Flags TikTok and Meta for Breaching Transparency Rules Under the Digital Services Act

On 24 October 2025, the European Commission released preliminary findings indicating that TikTok and Meta Platforms (Facebook and Instagram) have breached their transparency obligations under the Digital Services Act (DSA). The investigation, part of the EU’s broader Estrategia Digital Europea, highlights two core issues:

• Both companies allegedly failed to provide researchers with adequate access to publicly available data on their platforms.
  
• Meta additionally failed to offer straightforward mechanisms for users to report illegal content or contest moderation decisions.
  

The announcement underscores the EU’s continued effort to hold large online platforms accountable for transparency, consumer protection, and digital safety.

Understanding the Digital Services Act and Its Impact

The Digital Services Act, which came into full effect in 2024, establishes a unified regulatory framework for online platforms operating within the EU. It aims to:

• Increase transparency in content moderation and algorithmic decision-making.
  
• Strengthen mechanisms for user protection and redress.
  
• Reduce systemic risks linked to disinformation, illegal content, and opaque advertising models.
  

TikTok and Meta’s alleged failures mark one of the first significant enforcement steps under the DSA, sending a clear message to all digital intermediaries that compliance is not optional.

Implications for E-Commerce and Online Retailers

E-commerce merchants and brands that depend on social media platforms for advertising and customer engagement may face indirect consequences. Stricter oversight will likely lead to additional compliance requirements for ad targeting, influencer collaborations, and transparency around data use.

As platforms adjust to new EU standards, advertising costs or administrative burdens may rise — particularly for SMEs that rely heavily on Meta Ads or TikTok Shop integrations.

Trust and Transparency as Competitive Advantages

While regulatory compliance may appear restrictive, it also offers new opportunities. Platforms that align quickly with the DSA can strengthen user trust — a critical asset in digital commerce.
For e-commerce brands, this reinforces the value of transparent marketing practices and clear communication about data use, privacy, and content authenticity.

Consumers across the EU are increasingly demanding accountability from digital services. Merchants who adopt “DSA-aligned” principles early — such as offering clear content labeling and consent management — will likely benefit from higher brand credibility.

Increased Platform Risk for B2B and Marketplace Players

For B2B companies and marketplaces, dependency on large digital platforms represents a growing strategic risk. The DSA empowers the Commission to impose fines up to 6% of global annual turnover, potentially disrupting advertising, content delivery, or marketplace operations.

Businesses relying on Meta or TikTok ecosystems for visibility, product placement, or analytics may experience service interruptions or data restrictions during compliance adjustments.
Diversifying marketing channels and investing in first-party data strategies will become essential to mitigate these risks.

The Broader Context: Europe’s Digital Strategy in Action

The EU’s Estrategia Digital Europea seeks to establish Europe as a global leader in fair, transparent, and secure digital markets. The latest action against TikTok and Meta reflects a shift toward stronger institutional oversight and enforcement.

By targeting two of the largest global platforms, the European Commission is not only enforcing transparency but also reshaping how digital ecosystems interact with commerce, advertising, and data exchange across the continent.

Outlook: A More Regulated, More Trust-Centric Digital Economy

The DSA represents a turning point for Europe’s digital landscape. As enforcement expands, compliance will evolve from a legal obligation to a business imperative.
For e-commerce actors — from retailers to B2B service providers — aligning with the principles of transparency, fairness, and accountability will define long-term success in the European market.