The European Union’s proposed rules to strengthen online protections for children have prompted concerns that additional compliance requirements could make it harder for smaller European technology companies to compete with larger US firms.
The European Commission adopted its EU KIDS Act on September 17, proposing common rules covering social media, video-sharing services, online games, AI chatbots and other digital services used by children. The proposal still needs approval from the European Parliament and EU member states before it can become law.
Under the proposal, children under 13 would not be allowed to create social media accounts. Those aged 13 and 14 could use parent-supervised “mini accounts” with limited features and a daily usage limit of up to one hour. From age 15, young people would be able to open their own accounts on services required to meet EU safety standards.
The legislation would also require online services to adopt safety-by-design measures. These include restrictions on infinite scrolling, certain reward mechanisms and notifications designed to encourage excessive use. Profiles for minors would have to be private by default, while platforms would need to provide tools for parents to control access and for children to block or mute other users.
AI systems are also covered. AI chatbots and companions would have to be turned off by default for children and could not use features designed to create emotional dependence. App stores and online services would also be required to introduce age-assurance measures.
Stanislas Marchand, a former mobile gaming executive at French technology company Voodoo, has raised concerns about the potential effect of the requirements on Europe’s technology sector. He argues that companies could face higher costs because they would need to verify children’s ages, operate parent-controlled accounts, impose usage restrictions and demonstrate that their services meet safety requirements.
Marchand said Europe should respond by investing more urgently in its domestic AI capabilities, arguing that additional regulatory costs could make it harder for smaller European developers to compete with major US technology companies.
The European Commission says the KIDS Act is intended to create a common regulatory framework rather than a collection of different national requirements. The proposal would shift more responsibility to large platforms, requiring them to demonstrate that their services are safe for children and designed appropriately before reaching young users.
The Commission’s proposal comes as governments across Europe and elsewhere face growing pressure to address risks associated with children’s use of social media and other online services.
The legislation would impose significant obligations on large providers, with potential fines reaching 6 per cent of worldwide annual turnover under the proposed framework.
For European technology companies, the debate now centres on how the EU can strengthen child safety while maintaining conditions that allow domestic digital and AI businesses to develop and compete internationally. The final rules are expected to change during negotiations between member states and the European Parliament.
