What's Going On With Snap Stock Tuesday?

Snap Inc's SNAP underage user policy draws scrutiny from Britain's data regulator.

The regulator is gathering information on Snapchat to confirm the social media platform's efforts to remove underage users, Reuters cites familiar sources.

Also Read: Investigation Reveals Instagram's Algorithms Connect Users to Child-Sex Content Sellers, Promote Pedophile Networks: Report

Reportedly, in March, Snap had only removed a few dozen children under-13 from its platform in Britain in 2022, while U.K. media regulator Ofcom estimates it has thousands of underage users.

Under U.K. regulations, social media companies need parental consent before processing data of children below 13. Snap acknowledged the complaint with the goals of the ICO (Information Commissioner's Office).

In 2022, Ofcom found 60% of children aged between eight and 11 had at least one social media account, with Snapchat as the most popular app for underage social media use.

If the ICO holds Snap guilty of its rules, it could face a fine of up to 4% of its annual global turnover.

In 2023, the ICO fined TikTok 12.7 million pounds ($16.2 million) for misusing children's data.

TikTok told Ofcom that between April 2021 - April 2022, it had blocked an average of around 180,000 suspected underage accounts in Britain every month, or 2 million in those 12 months. 

Snapchat disclosed that it had removed approximately 60 accounts per month or just over 700 in total. 

Price Action: SNAP shares traded lower by 3.17% at $10.24 on the last check Tuesday.

Photo by Souvik Banerjee from Pixabay