Google, Meta and TikTok accused of weak response to online fraud ads in EU

BRUSSELS: Google, Meta Platforms and TikTok are facing new accusations in the European Union that they are failing to adequately tackle financial scam advertisements circulating on their platforms.

European consumer groups have filed formal complaints against the three tech giants, claiming they are not doing enough to protect users from fraudulent ads that can lead to significant financial losses.

The complaints were lodged by the European Consumer Organisation (BEUC) along with 29 member organisations across 27 European countries, and submitted to the European Commission and national regulators under the Digital Services Act (DSA).

The groups argue that the platforms are slow to remove scam content and often fail to act even after being notified. They warn that this allows fraudsters to continue targeting millions of users across Europe every day.

BEUC Director General Agustin Reyna said that if companies do not strengthen their response, online scammers will keep reaching large audiences and putting consumers at risk of losing hundreds or even thousands of euros.

The companies have rejected the allegations.

Google said the complaint misrepresents its efforts, claiming it blocks more than 99 per cent of policy-violating ads before they appear to users.

Meta said it removed over 159 million scam ads last year, with 92 per cent taken down proactively before being reported, adding that it uses advanced AI tools and partnerships to combat fraud.

TikTok also said it takes action against violations but described scam activity as a broader industry challenge, noting that criminals constantly change their tactics.

According to BEUC, nearly 900 suspected scam ads were reported between December and March, but only 27 per cent were removed, while more than half of the reports were either rejected or ignored.

Consumer groups are now urging EU regulators to investigate whether the companies are complying with DSA rules and to impose fines if breaches are confirmed. Under the law, penalties can reach up to 6 per cent of a company’s global annual turnover.