EssilorLuxottica: Smart Glasses Boom Faces Regulatory Resistance

EssilorLuxottica reports for the third quarter on Tuesday amid increasing regulatory pressure on smart glasses that resemble regular ones. The company and Meta began trading Ray-Ban Meta glasses in 2023, and the market quickly grew: global shipments of AI glasses are expected to reach 8.4 million units in 2025 compared to approximately 2.1 million in 2024, according to Omdia. Meta glasses accounted for 81.3% of global shipments in the first half of the year. The company is not expected to disclose exact sales figures for smart glasses, but it reported in the second quarter that they nearly doubled year over year.

It is precisely the resemblance to regular glasses that ensured success – unlike the bulky Google Glass from a decade ago. But this same inconspicuousness worries regulators. Last week, the European Data Protection Board (EDPB) stated that the devices facilitate covert recording, including of surrounding conversations. In a preliminary non-binding statement, the board urged manufacturers to combine visible recording indicators, sound signals, and notifications to nearby devices, as well as to limit streaming, automatically blur faces, and introduce geofencing in hospitals and schools.

Norway took the toughest stance: this month it announced plans to temporarily ban the use of AI glasses in certain places. Australia considered banning glasses with cameras in government institutions in September. Regulators in Italy and Austria are investigating cases of glasses being used by schoolchildren, and France has received several complaints. "Authorities should consider a more coordinated ban on such devices in public places," said Kleanthi Sardelli from NOYB.

Ross Gerber from Gerber Kawasaki, which holds Meta shares, believes that privacy and social stigma may limit their spread: "People will make you feel uncomfortable if you wear them." His pair of glasses is lying in the garage. A Meta representative counters: the glasses are popular for music, calls, and translations, "they were designed to be noticed," so each pair with a camera has a bright indicator. EssilorLuxottica told Reuters that regulations should protect people's rights and support innovation.