The European Union passed a new law early Thursday morning that will hold social media platforms like Meta and TikTok liable for financial fraud — a major escalation in the bloc’s attempt to rein in Big Tech.
After hours of late-night negotiations, EU lawmakers approved the measure, adding another layer of regulatory pressure on companies that have spent years lobbying Washington to counter the EU’s aggressive antitrust and content-moderation agenda. The law builds on the Digital Services Act (DSA) and Digital Markets Act (DMA), which curbs the spread of illegal content and prevent tech giants like Google, Amazon, and Meta from leveraging their dominance to expand across the internet.
U.S. trade court blocks President Trump’s tariffs in surprise ruling. What happens now? (Updated)
Violating either law can trigger massive fines, something the tech sector — and U.S. President Donald Trump — have repeatedly pushed back against. Trump has accused the EU of “discriminating” against American companies, framing the bloc’s enforcement as an attack on U.S. innovation.
Mashable Light Speed
Recommended deals for you
Apple AirPods Pro 3 Noise Cancelling Heart Rate Wireless Earbuds
—
$219.99
(List Price $249.00)
Apple iPad 11″ 128GB Wi-Fi Retina Tablet (Blue, 2025 Release)
—
$274.00
(List Price $349.00)
Sony WH-1000XM5 Wireless Noise Canceling Headphones
—
$248.00
(List Price $399.99)
Blink Outdoor 4 1080p Security Camera (5-Pack)
—
$159.99
(List Price $399.99)
Fire TV Stick 4K Streaming Device With Remote (2023 Model)
—
$24.99
(List Price $49.99)
Bose Quiet Comfort Ultra Wireless Noise Cancelling Headphones
—
$298.00
(List Price $429.00)
Shark AV2511AE AI Robot Vacuum With XL Self-Empty Base
—
$249.99
(List Price $599.00)
Apple Watch Series 11 (GPS, 42mm, S/M Black Sport Band)
—
$339.00
(List Price $399.00)
WD 6TB My Passport USB 3.0 Portable External Hard Drive
—
$138.65
(List Price $179.99)
Amazon Fire HD 10 32GB Tablet (2023 Release, Black)
—
$69.99
(List Price $139.99)
Products available for purchase through affiliate links. If you buy something through links on our site, Mashable may earn an affiliate commission.
Much of the final stretch of deliberations centered on who should shoulder the blame when these scams happen. Several MEPs argued that Big Tech and banks share equal responsibility, since platforms host the scams and banks process the money. However, European governments pushed back, arguing that banks should only be held accountable when their own safeguards fail.
The result is a compromise: banks will reimburse victims when a scammer impersonates the bank or when a financial transaction goes through without the customer’s consent, according to the EU release.
The new fraud-liability rules arrive as social media platforms have become the primary target for investment scams, impersonation schemes, and questionable ads of every kind. Under the law, platforms will now be required to compensate banks when a user is defrauded, and it’s clear the company failed to remove a reported scam.
Topics
Social Media
Government