EU prepares to fine Big Tech over online consumer protection failures

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EU eyes fines for Big Tech

Highlights

European Commission is drafting legislation to address addictive digital design, subscription traps, and dark patterns, granting direct enforcement and fining powers for systemic breaches.
EU justice commissioner Michael McGrath states current member state-led enforcement has produced no fines, and enhanced centralized EU action targets Big Tech, smaller platforms, and gaming companies.
The proposal coincides with EU and national moves for stricter online child safeguards, with internal debate about overlap with existing legislation such as the Digital Services Act.

Planned digital fairness rules and enforcement powers

As reported by Financial Times, EU justice commissioner Michael McGrath says the European Commission is preparing legislation that would address addictive website and app design, subscription traps and other dark patterns that push users into spending money online.

McGrath says the digital fairness proposal is intended to close remaining gaps in online consumer protection, with a particular focus on children and young people, whom he describes as especially vulnerable where commercial transactions are involved. He says Brussels also wants the power to enforce the rules directly in very large cross-border systemic cases, including through fines for platforms, smaller online traders and video game makers that breach consumer protection law.

At present, member states enforce consumer protection rules with coordination from the Commission. McGrath says that system has never resulted in a fine or penalty and is not a sufficient deterrent for companies that ignore EU law.

Debate widens over child safeguards online

The proposal comes as the EU is also weighing broader social media safeguards for children, including a possible ban for younger users after an expert panel delivers its verdict on Monday. McGrath says policymakers need a coherent response and argues there is no single measure that can resolve all online harms.

Several countries are already moving in this direction. The UK says under-16s will be banned from platforms such as TikTok, Instagram and Snapchat, while France and other EU member states have announced national restrictions, and European Commission President Ursula von der Leyen has backed stronger controls.

Still, the Commission's plans are being debated internally, with some officials and countries including Poland arguing that the proposals may overlap with existing rules such as the Digital Services Act. McGrath says international experience with outright social media bans remains inconclusive and points instead to a broader mix of measures, including tighter default settings, more parental oversight, curbs on addictive design and stronger digital literacy so children can better protect themselves online.

In our earlier coverage of rising prices for streaming and gaming subscriptions in the U.S., we noted that repeated subscription hikes have been pushing households—especially Gen Z and Millennials—to cut back on at-home entertainment spending. We also highlighted data showing video and video game subscription or rental prices have climbed sharply since 2019, underscoring how digital entertainment inflation is reshaping consumer behavior and pressuring platforms’ revenue strategies.

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