Snapchat Gets Hit With EU Investigation, Reuters Reports

Snap Inc. (NYSE:SNAP) is one of the best oversold stocks to buy under $20. Reuters reported on March 26 that Snapchat, owned by Snap Inc. (NYSE:SNAP), was hit with an EU investigation, with regulators warning that it does not appear to be taking enough steps to prevent the sale of illegal goods and child grooming. The probe is being conducted by the EU under the Digital Services Act, under which big online platforms are required to do more to deal with illegal or harmful content, or risk being fined ​as much as 6% of their global annual sales.

EU tech chief Henna Virkkunen said in a statement that Snapchat seems to have overlooked the fact that the Digital Services Act demands high ​safety standards for all users, ranging from grooming ⁠and exposure to illegal products to account settings that undermine minors’ safety. The European Commission is charged with the enforcement of the act, and stated that it suspects Snapchat does not have enough safeguards to shield children from being contacted by users who might be looking to exploit them for criminal activities, or sexually.

Snap Inc. (NYSE:SNAP) is a technology company that runs Snapchat as a visual messaging social application. Snapchat is the company’s core mobile application that employs augmented reality in its various “Lenses.”

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