The EU’s regulatory environment will hinder investment in AI-generated ads and agentic commerce in 2026. But TikTok Shop’s expansion will be a catalyst for live commerce.

Meta announced updates to its brand safety and suitability capabilities for Threads and Instagram this week as it looks to gain advertiser trust in its platforms amid regulatory scrutiny. The new restrictions are a double-edged sword. On one hand, advertisers will have increased confidence in their ability to appear next to safe content that doesn’t damage brand image. But on the other hand, reaching younger audiences helping drive growth could become more challenging and require nuance.

Meta, TikTok, and X in hot legal water: The platforms are facing suits in the US and EU that could have implications for how advertisers invest.

Meta’s EU Marketplace ad change shifts power to regulators: The company will allow rivals to buy ads on Marketplace in compliance with EU rules

Google attracts EU scrutiny over advertising to teens: A global crackdown on privacy and teen data is extended to the search giant.

TikTok employs 6,000 content moderators in Europe: The platform disclosed it has 150 million users in the region in a regulatory filing.

Temu’s international expansion hits regulatory roadblocks: Governments around the world are scrutinizing its business practices and taking measures to protect local retailers.

The platform introduces stricter controls to curb illegal content but may alienate its privacy-conscious user base.

Western Europe isn’t the biggest market for TikTok in terms of user numbers. But its users are highly engaged and digitally savvy, so the platform should be an attractive proposition for marketers.

New EU legislation regulating digital services and platform providers will have ramifications for global companies that compete in the region. Compliance is already required; players now need to understand their obligations.

Meta proposes ad-free subscriptions for EU users: A strategic shift ahead of 2024's Digital Services Act, with global implications.

Big Tech tries cooperation, not combat, with EU regulators: Platforms are trying to adapt to new norms around data privacy and advertising.