30/04/2026

BIZ & FINANCE THURSDAY | APR 30, 2026

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Meta found in breach of EU digital content rules

BRUSSELS: The EU said yesterday Meta is failing to prevent children under 13 using Facebook and Instagram, potentially exposing them to inappropriate content – and putting the tech giant at risk of a massive fine. The European Union has in recent months stepped up efforts to protect children online, with several member countries considering social media bans for under-16s. The EU executive is also exploring a possible bloc-wide age limit on social media after coming under intense pressure to take broader action following Australia’s groundbreaking ban on using such platforms for under-16s. In its latest move to enhance protections for children online, the EU said a probe showed Meta broke digital content rules, and told the US firm to “strengthen” its measures to prevent, detect and remove under 13s on Facebook and Instagram. Under Meta’s own terms and conditions, the minimum age to access the social media platforms is 13. In its preliminary view, the EU found Meta had ineffective measures to enforce its own restrictions on children using Facebook and Instagram.

Meta can avoid fines by offering remedies for the breaches. The May 2024 probe into Meta is wide-ranging. EU regulators are still looking into how Meta protects users’ physical and mental wellbeing, as well as the “addictive” design of Facebook and Instagram. Alongside the EU’s investigations into online platforms, Brussels this month said an EU-developed age-check app was ready to go and expected to be rolled out in the coming months. EU officials say the app seeks to replace pop-up banners asking users to click to confirm they are over 18 to access adult content sites. Last month, the EU said four pornographic platforms were allowing children to access adult content in breach of digital rules. – AFP Gold loses lustre on Mideast war LONDON: Gold is seen as a safe haven asset in times of volatility but investment volumes fell in the first quarter, industry data showed yesterday, as the Middle East war forced some investors to liquidate holdings to raise cash. Investment volumes fell by 5% during the quarter, according to the World Gold Council, despite gold having set a record high in January as investors sought refuge from a weak dollar and US President Donald Trump’s erratic policy shifts. “Hefty outflows in March reversed much of the sizable January and February inflows” into gold exchange-traded funds (ETFs), an easy means to invest in the precious metal, the council said in its quarterly report. And that was linked in particular to North American funds. “Oftentimes because gold is so widely accepted, it is the first thing that you sell when you need a certain access to cash or to liquidity,“ said World Gold Council expert Juan Carlos Artigas. Following the US-Israeli attacks on Iran at the end of February, Tehran closed traffic through the Strait of Hormuz, through which a fifth of the world’s oil and liquefied natural gas normally flows. That sent oil and gas prices rocketing higher and disrupting markets, forcing many investors to raise cash to settle their positions. The prospect of the US Federal Reserve raising interest rates in response to higher inflation boosted the dollar, making gold more expensive for investors who don’t hold dollars. If demand for gold dropped by volume, the value of purchases jumped by 62%. Gold touched a new record just shy of US$5,600 per ounce at the end of January, and averaged US$4,873 per ounce over the quarter. High prices, driven largely by investment holdings, hit demand for jewellery, however. The jewellery market was also disrupted by the war, with the Middle East a key shipping hub. – AFP

weaponry adopted by the EU in recent years to curb what Brussels describes as Big Tech’s excesses. European regulators found children are able to easily create an account by entering a false date of birth, and said Meta had “no effective controls” to check. The EU also said Meta’s tool to report the presence of children on Facebook or Instagram was “difficult to use and not effective, requiring up to seven clicks just to access the reporting form”. Meta also “inadequately” identified the risks of children under 13 accessing the apps, and the potential for exposure to “age-inappropriate experiences”. Brussels added Meta’s risk assessment “contradicts large bodies of evidence” from across the EU that indicate around 10% to 12% of under-13s access the platforms.

o Tech giant failing to keep under-13s off Facebook and Instagram: Regulator

adding the company would continue to engage with the EU. The EU has vowed to ensure Big Tech gets to grips with the many dangers online for children. In February, it gave the unprecedented warning to China’s TikTok to change its “addictive design” or risk heavy fines. Wednesday’s preliminary findings against Meta come after the EU opened an investigation in May 2024 under the Digital Services Act (DSA), an online content law that has been fiercely criticised by the US President Donald Trump’s administration. The DSA is part of reinforced legal

“Terms and conditions should not be mere written statements, but rather the basis for concrete action to protect users – including children,” said EU tech tsar Henna Virkkunen. If the regulator’s views on Meta are confirmed, the EU can impose a fine of up to 6% of the company’s total worldwide annual turnover. Meta disagreed with the EU’s findings. “We’re clear that Instagram and Facebook are intended for people aged 13 and older and we have measures in place to detect and remove accounts from anyone under that age,” a Meta spokesperson said,

A Mercedes-Benz GLC SUV is displayed at the Beijing Auto Show in Beijing. – AFPPIC

Mercedes profit tumbles on China, tariff woes

BERLIN: Mercedes-Benz reported a sharp drop in operating profit at the start of 2026, a year set to bring higher raw material costs and further tariff pressures, weighing on the German carmaker as it overhauls its model lineup to boost sales. The Middle East conflict has driven up global industry costs, compounding pressure on European automakers already hit by high US import tariffs. Mercedes, like German peers Volkswagen and BMW, is also battling falling sales in China, as domestic brands like BYD and Nio encroach on the premium segment after conquering the mass market

Mercedes’ full-year forecast of operating profit “significantly higher” than last year presumes the conflict will soon be resolved, he added. Mercedes’ sales declined by 6% globally in the first quarter and by 27% in China, its largest single market. The carmaker hopes for momentum in the second half from continued product launches, including a revamped S-class range to defend its status as a top luxury brand in China. Wilhelm said the company would maintain tight cost controls while aiming for a cautious return to higher margins in its core car business, with a mid-term target of 8-10%. – Reuters

CEO Ola Kaellenius is betting on sweeping cost cuts, including job reductions, while revamping Mercedes’ lineup with 40 new models from last year through 2027. US President Donald Trump’s tariffs are expected to deal a 1.5-percentage point blow to Mercedes’ core auto margin this year. That effect was lower in the first quarter due to an accounting effect linked to Mercedes’ application for a tariff refund following a Supreme Court ruling last year. Meanwhile, raw material costs are expected to rise further this year due to the Middle East conflict, finance chief Harald Wilhelm said.

with cheap, tech-laden EVs. Mercedes reported yesterday earnings before interest and tax (EBIT) of €1.9 billion (RM8.8 billion) in the first quarter, down 17% on the year. First-quarter margins slipped to 4.1%, down from 7.3% a year earlier, but within the expected full-year range of 3-5%. Mercedes’ quarterly profit slump was smaller than expected. Analysts polled by Visible Alpha had expected a 29% year-on-year fall. Shares were 1.1% higher after the results, which Bernstein analysts called “a good start to a very complicated year”.