EssilorLuxottica’s AI Glasses Success Faces a Regulatory Test

The scrutiny comes as the French-Italian eyewear giant prepares to report third-quarter results, with investors watching whether strong demand for its Ray-Ban Meta glasses can continue, according to Reuters.

Global shipments of AI-enabled glasses reached 8.4 million units in 2025, up from approximately 2.1 million the previous year, according to Omdia figures cited by Reuters. EssilorLuxottica’s Meta-branded products accounted for 81.3% of worldwide shipments in the first half of 2026.

The company previously reported that smart glasses sales nearly doubled in the second quarter, highlighting the growing importance of the category.

European Regulators Target Privacy Risks

The European Data Protection Board warned last week that increasingly discreet wearable cameras could allow users to record people without their knowledge, Reuters reported.

The board proposed safeguards including more visible recording indicators, audible alerts, automatic blurring of bystanders’ faces and restrictions on recording in sensitive locations such as schools and hospitals.

Although the recommendations are not binding, several countries are considering their own measures.

Related: Regulatory Scrutiny Intensifies as EssilorLuxottica Pushes Into AI Eyewear

Norway announced plans this month to temporarily restrict AI-enabled glasses in certain locations, while Australia is examining possible limitations in government workplaces. Privacy regulators in Italy and Austria are also investigating incidents involving students using the devices in schools, according to Reuters.

The concerns reflect a central challenge for manufacturers: Smart glasses resemble ordinary eyewear, making them convenient for users but potentially difficult for others to recognize as recording devices.

Meta Defends Existing Safeguards

Meta Platforms Inc. maintains that its glasses include privacy protections, including a recording light designed to alert nearby individuals when photos or videos are being captured.

EssilorLuxottica has emphasized the importance of balancing consumer privacy with technological innovation, according to Reuters.

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Privacy advocates remain skeptical. Kleanthi Sardeli, a lawyer at European digital rights organization NOYB, told Reuters that authorities should consider coordinated restrictions on smart glasses in public spaces.

The controversy has also raised questions about consumer acceptance.

Ross Gerber, chief executive of investment firm Gerber Kawasaki, told Reuters that privacy concerns could limit adoption. Gerber, whose firm owns Meta shares, said he had stopped using his own smart glasses.

The situation echoes the difficulties faced by Google Glass more than a decade ago, when concerns about surveillance contributed to resistance against wearable cameras.

Competition Grows as Investors Weigh Risks

Despite regulatory uncertainty, major technology companies are preparing to enter the market.

Google is collaborating with Samsung Electronics Co. on Gemini-powered smart glasses expected before the end of 2026, while Apple Inc. is also developing connected eyewear, Reuters reported.

Analysts remain divided over the potential impact of privacy restrictions.

Stifel analyst Cedric Rossi identified privacy concerns as a possible obstacle, although camera-free glasses could help address some objections. Such devices, however, would sacrifice certain AI capabilities that depend on visual information.

Bank of America analysts took a more optimistic view, describing regulatory risks as relatively limited and broad prohibitions as unlikely, according to Reuters.

For EssilorLuxottica, the immediate test will be whether its upcoming earnings update demonstrates sustained demand. The company is not expected to provide detailed smart glasses revenue figures, but its results could offer insight into the category’s growth.