Meta, Google and X, formerly known as Twitter, will need to adhere to strict new content moderation rules in the European Union when a new law governing social media platforms becomes legally enforceable from Friday.
Alphabet’s Google said Thursday that it’s making several changes to comply with the E.U.’s Digital Services Act, including expanding access to data on targeting of online ads and disclosing more information about its content moderation operations for services like Google Search.
It will also augment risk analysis for its largest platforms.
Nineteen companies were designated “very large online platforms” and “very large online search engines” by the EU last spring, which means they had more than 45 million monthly users.
These platforms now need to comply with rules that include restrictions on targeting ads to minors and using sensitive data like race or gender in serving ads.
They will also be required to have sufficient numbers of content moderators in each E.U. language.
The companies will have to submit risk assessments to the European Commission that detail how they mitigate the impact of harmful content on their platforms.
Non-compliance could lead to fines as high as 6% of a company’s annual revenue, or even being banned from operating in the bloc.
Nick Clegg, Meta’s president for global affairs, said the company has introduced new steps for Facebook and Instagram, including ending targeting of ads for teenagers based on their app activity.
Big tech rally fizzled Thursday
A rally in big tech fizzled out as bond yields rose, with traders wading through remarks from a slew of Federal Reserve officials and awaiting Jerome Powell’s speech on Friday for clues on the outlook for interest rates.
The S&P 500 dropped more than 1%, while the Nasdaq 100 fell twice as much.
Treasury two-year yields, which are more sensitive to imminent policy moves, hovered near 5%.
The megacap space came under pressure, with Tesla and Apple each dropping at least 2.6%.
Nvidia, the company at the forefront of the artificial-intelligence race, almost wiped out a rally that topped 6%.
“It’s sort of like sell the news,” said Max Wasserman, founder of Miramar Capital. “Nvidia had great numbers, blow-away numbers, but the market already reflected that.
“Investors may be realizing that we’ve had such a big run in the market, so let’s take a little profit before the Fed throws cold water on it. And if it doesn’t, they’ll come right back in.”
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Traders are keeping a close eye on the annual gathering of top central bankers in Jackson Hole, Wyoming – where Powell is scheduled to deliver a speech at 10:05 a.m. Washington, D.C., time on Friday.
The Fed chief will likely use his platform to outline how officials will assess whether rates should go higher and determine when it’s time to start cutting them.
A survey conducted by 22V Research shows that 78% of investors expect Powell to focus on data dependency.
From wire reports
