Advertisers aren’t happy about picking up Meta’s European tax tab

Meta advertisers have had a week to sit with the news that they’ll be picking up the tab for the digital service tax on the platform. So far the reaction has been unease. 

Before digging into why, here’s a recap.

As of July 1, Meta is introducing what it’s calling “location fees” to pay for the current digital services tax (DST) and other similar location-based fees the company faces in certain European countries. Until then, Meta will continue to absorb and pay those fees, as it is legally liable for the tax.

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Some creators don’t see immediate value in Instagram’s controversial ‘Shop the Look’ AI test

Some creators said they have a renewed belief in controlling what products they choose to recommend their followers in the aftermath of Instagram’s Shop the Look rollout — which automatically added product tags and shopping links to posts using AI visual recognition. While some see value in having AI recommend products for consumers based on creators’ posts, most believe the feature needs some honing before a full rollout across the the platform.

Instagram tested its “Shop the Look” feature with a controlled user base in late February, but the rollout drew backlash from creators, who argued the feature was poorly implemented and risked compromising their accounts.

The feature moves Meta closer to TikTok’s social commerce model, specifically TikTok Shop. And yet, creators and brands reportedly never consented to the test. It’s unclear if the feature is still live, though two creators Digiday spoke with said they no longer see it on their accounts.

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