Social media companies to be held liable for financial scams under new EU rules

The European Union passed a new law early Thursday morning that will hold social media platforms like Meta and TikTok liable for financial fraud — a major escalation in the bloc’s attempt to rein in Big Tech.

After hours of late-night negotiations, EU lawmakers approved the measure, adding another layer of regulatory pressure on companies that have spent years lobbying Washington to counter the EU’s aggressive antitrust and content-moderation agenda. The law builds on the Digital Services Act (DSA) and Digital Markets Act (DMA), which curbs the spread of illegal content and prevent tech giants like Google, Amazon, and Meta from leveraging their dominance to expand across the internet.

Violating either law can trigger massive fines, something the tech sector — and U.S. President Donald Tr