Instagram, Alphabet, TikTok, Twitter face regulatory action

52
2
Instagram, Alphabet, TikTok, Twitter face regulatory action

BRUSSELS Meta Platforms' Instagram, Alphabet's YouTube, TikTok and Twitter could face regulatory action after the European consumer group BEUC complained to the European Commission and consumer authorities that the online platforms allegedly facilitate the misleading promotion of crypto assets.

U.S. regulators suing crypto platforms, including the collapse of FTX and Coinbase, have raised concerns about consumer protection related to crypto assets like bitcoin and ether.

The European Union adopted the world's first comprehensive set of rules for cryptoasset regulation MiCa BEUC last month in its complaint filed on Thursday, saying the widespread marketing of crypto assets on social media platforms is an unfair commercial practice as it exposes consumers to serious harm such as the loss of substantial amounts of money.

This is happening through influencers and advertising.

The Consumer Protection Cooperation Network called for the online platforms to adopt stricter advertising policies on crypto and take measures to prevent influencers from misleading consumers.

The Network should then inform the European Commission about the effectiveness of these measures, the EU said in a joint complaint with nine of its members.

The group called for European consumer authorities to collaborate with European supervisory authorities for financial services to ensure the platforms adjust their advertising policies to prevent the misleading marketing of crypto.

Crypto will soon be regulated by the new Market in Crypto Assets Regulation, but this legislation does not apply to the social media companies benefiting from the advertising of crypto at the expense of consumers, BEUC director Monique Goyens said.

This is why we are turning to the authorities in charge of protecting consumers to ensure Instagram, YouTube, TikTok and Twitter respect their duty to protect consumers against crypto scams and false promises, she said.

Consumer groups such as France, Greece, Italy, Lithuania, Portugal, Slovakia and Spain also signed up to the complaint.