EU Proposes KIDS Act Fining Platforms Up to 6% of Global Sales

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โดย GuruFocus·EU·Read original
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The European Union has proposed the KIDS Act, which would place far more responsibility for children's online safety directly on platforms such as Meta Platforms. The proposal would block social-media access for children under 13 and require parental controls for users aged 13 to 15, while also targeting profiling algorithms, infinite scrolling, reward-based engagement and unsolicited contact, with AI companions switched off by default for younger users. Platforms could face penalties of as much as 6% of worldwide annual sales for non-compliance, though the proposal still needs negotiations with EU member states and the European Parliament before becoming law. Meta shares traded at $672.84 Thursday, and the company spent $31.08 billion on capital expenditures last quarter, equal to roughly 51.1% of revenue. Meta does not separately disclose revenue generated from users under 18, leaving open how much it may need to redesign recommendation, advertising and AI products across Europe before investors can quantify the revenue actually at risk.

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EU's proposed KIDS Act would impose child-safety duties and fines up to 6% of global sales on Meta, risking redesign of its recommendation, ad and AI products in Europe.

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