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Key Takeaways
- European regulators are seeking more information from Alphabet's Google about an alleged advertising partnership the search giant had with Instagram parent Meta Platforms, in a probe that may lead to a formal investigation.
- The deal allegedly targeted Instagram advertisements to teenagers on YouTube, circumventing Google's rules barring personalized ads to those under 18.
- Google is facing a number of challenges around the world, including a growing regulatory environment.
European regulators are seeking information from Alphabet’s (GOOGL) Google about an alleged secret advertising partnership the search giant had with Instagram parent Meta Platforms (META), in a probe that may lead to a formal investigation.
A spokesperson at the European Commission confirmed a Financial Times report that it was seeking more information on a deal, since cancelled, between the companies that targeted Instagram advertisements to teenagers on YouTube, circumventing Google's rules barring personalized ads to those under 18.
The Commission is the European Union’s (EU) enforcement arm. Digital Services Act of the EU prohibits targeting advertising that is based on profiles using minors’ personal information.
"We can confirm that the Commission, on 18 September, has indeed sent an RFI (requests for information) to Google on the platform's advertising practices," Thomas Regnier, a spokesperson at the Commission, said in a statement to Investopedia. "Google has responded to our RFI. The Commission is currently assessing the replies and decide on potential next steps."
Google Says It Has Taken Steps to Ensure Children Aren't Targeted
The Financial Times in August reported the alleged project aimed to pull 13- to 17-year-old YouTube users into Meta's Instagram.
Google announced Tuesday it has taken measures since August’s report, including training its sales reps to ensure they understand that advertisers cannot target specific audiences using proxies.
“The safeguards we have to protect teens, like prohibiting ad personalization, are industry leading and continue to work. We’ve held updated internal trainings to ensure our sales teams remain aware of our policies and technical protections," a Google spokesperson said in an email to Investopedia.
Meta didn't immediately respond to a request for comment.
Social Media Use by Children Has Become a Hot Political Topic
Some political leaders globally have been trying to regulate social-media use by children, as worries intensify about the technology's impact on mental health.
Last month, Australia passed the world’s first ban on social media use by children under 16 years old, a law that could potentially hurt platforms like Elon Musk’s X, ByteDance’s TikTok, Snap’s (SNAP) Snapchat, and Meta’s Facebook and Instagram.
For its part, Google has faced a slew of regulatory challenges in recent months. Canada’s antitrust regulator said last month it is suing Alphabet’s Google over alleged anti-competitive conduct in its online-advertising business. That was just days after the U.S. Department of Justice (DOJ) said that Google should sell off its Chrome browser in an August court ruling that the tech firm holds an illegal monopoly in search.
Alphabet stock has recently risen by 4%. Meta's stock was up less than 1%.
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