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Netherlands Investigates Snapchat Over Vape Sales and Minor Protection

The Dutch consumer watchdog ACM has opened an investigation into Snapchat, accusing the platform of failing to adequately protect minors from illegal vape sellers, potentially breaching the EU’s Digital Services Act (DSA).

Key Details

  • Allegation: Snapchat may not be doing enough to stop vape sales targeting under-18s.

  • Regulation: The DSA obliges platforms to provide strong safeguards for minors and prevent illegal sales.

  • ACM stance: “We see enough indications of possible DSA breaches by Snapchat to open an investigation.”

  • Collaboration: ACM is working with the European Commission on the case.

Snapchat’s Response

  • Snap Inc. said it takes the issue seriously and will cooperate.

  • The company noted it has:

    • Invested heavily in proactive detection technology.

    • Banned advertising of vapes.

    • Attempted to block illicit content in searches.

  • A spokesperson admitted no system can “eliminate every threat online.”

Why It Matters

  • This is one of the first DSA-related probes into how platforms enforce rules on harmful and illegal products.

  • Highlights growing European scrutiny of U.S. social media firms.

  • The case could set a precedent for how regulators handle youth protection and illicit product sales online.

No timeline for the investigation has been provided.

U.S. Supreme Court Lets Mississippi Social Media Age-Check Law Stand for Now

The U.S. Supreme Court on Thursday declined to temporarily block a Mississippi law requiring social media users to verify their age and obtain parental consent for minors, in a challenge filed by NetChoice, a trade group representing companies including Meta (META.O), Alphabet’s YouTube (GOOGL.O), and Snapchat (SNAP.N). The law remains in effect while NetChoice’s broader legal challenge, which argues it violates the First Amendment, continues in lower courts.

Justice Brett Kavanaugh noted in a statement that the Mississippi law is likely unconstitutional but said NetChoice had not met the high standard needed to halt enforcement at this stage. Paul Taske, co-director of the NetChoice Litigation Center, described the Supreme Court’s decision as “an unfortunate procedural delay” but expressed confidence that the challenge would ultimately succeed.

Mississippi’s attorney general welcomed the order, saying it allows “thoughtful consideration” of the law. The legislation, passed unanimously by the state legislature, requires platforms to obtain “express consent” from a parent or guardian before a minor can open an account and mandates “commercially reasonable” age verification. Violations can carry civil penalties of up to $10,000 per incident and potential criminal penalties under state deceptive trade practices laws.

The case comes after U.S. District Judge Halil Suleyman Ozerden initially blocked enforcement for some NetChoice members, but the 5th U.S. Circuit Court of Appeals allowed the law to take effect. Similar measures have been blocked in courts in seven other states. Technology companies maintain that their platforms already include extensive content moderation and parental controls to protect minors.

Mississippi defended the law as a “common” method to safeguard children online, emphasizing parental consent and age verification as key protective measures.

Snap Reports Slowest Revenue Growth in Over a Year as Ad Platform Glitch and Competition Weigh

Snap Inc. (SNAP.N), the parent company of Snapchat, reported on Tuesday its slowest quarterly revenue growth in more than a year, affected by a temporary glitch in its advertising platform and strong competition from larger rivals such as Meta and TikTok. The news sent Snap shares down over 16% in extended trading.

The company acknowledged and resolved an error that unintentionally allowed some ads to run at significantly lower prices, which negatively impacted revenue. Snap faces intense competition from Meta’s Facebook and Instagram, as well as TikTok, with advertisers favoring the bigger platforms amid tighter marketing budgets due to economic uncertainty. Meta and Reddit recently reported strong second-quarter results, highlighting Snap’s tougher market environment.

In addition, the timing of Ramadan influenced advertising spend patterns, and the expiration of a U.S. duty-free import exemption (“de minimis”) led some Chinese advertisers to reduce their budgets on the platform.

Snap’s second-quarter revenue was $1.34 billion, up 8.7% year-over-year, largely in line with expectations but slower than the double-digit growth seen in the previous five quarters. The company’s net loss widened to $263 million from $249 million a year earlier.

Small and medium-sized businesses were the primary drivers of ad revenue growth. Snap’s subscription service, Snapchat+, continues to diversify revenue, with subscriber numbers rising 42% to nearly 16 million during the quarter. Daily active users increased 9% to 469 million, slightly above estimates.

Snap projects third-quarter revenue between $1.48 billion and $1.51 billion, matching analyst expectations.