Google, Meta, TikTok hit by EU consumer complaints about handling of financial scams

Google from Alphabet, Meta Platforms Inc. and TikTok have faced complaints from EU consumer protection agencies on Thursday regarding their inability to safeguard users against financial scams on their respective social media platforms, thus risking fines from the authorities.

This development comes amid increasing international pressure on Big Tech companies to ensure that social media companies mitigate their negative impact, especially among children and other vulnerable user segments.

The complaint was made by European Consumer Organisation (BEUC) along with 29 of its member organizations in 27 European countries and was directed to both the European Commission and national regulatory authorities in light of the obligations placed on large online platforms under the recently introduced Digital Services Act.

"Instead of making the effort to take down financial scams from their platforms proactively, companies like Meta, TikTok, and Google simply do nothing even after being made aware of such scams," Agustin Reyna, Director General of BEUC, was quoted saying in a statement.

"By not addressing the issue of financial scams circulating in their platforms, scammers will keep on tricking millions of Europeans into parting with hundreds or even thousands of euros," he added.

Google and Meta rejected the complaints and said they work proactively to protect their users.

A Google spokesperson said: “We strictly enforce our ad policies, blocking over 99 per cent of violating ads before they ever run. Our teams constantly update these defences to stay ahead of scammers and protect people.”

Meta said it found and removed over 159 million scam ads last year, 92pc before anyone reported them.

“We invest in advanced AI, tools, and partnerships to stop them,” a spokesperson said.

TikTok said it takes action against violations, adding that scams are an industry-wide challenge while bad actors constantly adapt their tactics.

The consumer groups, meanwhile, said they reported nearly 900 ads suspected of breaching EU laws between December last year and March this year, but the platforms only took down 27pc of the ads and 52pc of the reports were rejected or ignored.

The groups urged regulators to investigate whether the companies were complying with the rules and to impose fines for breaches.