The European Union has warned Meta that it could face substantial fines unless it makes changes to Facebook and Instagram after regulators concluded the platforms contain design features that encourage addictive use, particularly among children and teenagers.

The European Commission said its preliminary findings indicate that Meta may have breached the Digital Services Act by failing to adequately address the risks posed by features such as infinite scrolling, autoplay videos and highly personalised content recommendations. Regulators argue these tools can encourage compulsive use and negatively affect users' mental health.

The Commission has called on Meta to make significant changes to its platforms, including disabling autoplay and infinite scrolling by default, introducing more effective prompts encouraging users to take breaks, and reducing reliance on engagement-driven recommendation algorithms. It also said the company's parental controls and time management tools are too complicated and do not provide sufficient protection for young users.

Meta has rejected the findings, saying it has already introduced a range of measures to safeguard younger users, including Teen Accounts with enhanced privacy settings, screen-time limits and parental supervision tools. The company said it will continue to engage with the Commission as the investigation progresses.

If the Commission's preliminary conclusions are upheld and Meta fails to comply with the rules, the company could face fines of up to six per cent of its global annual turnover under the Digital Services Act. Meta will have the opportunity to respond before a final decision is made.

The case forms part of the European Union's wider efforts to hold major technology companies accountable for the impact of their platforms, particularly on young people. Regulators have increasingly focused on the use of algorithms and platform design that encourage prolonged engagement, arguing they should be balanced with stronger protections for users' wellbeing.