EssilorLuxottica's Smart-Glasses Boom Meets a French Legal Storm
Published on 09/23/2026 at 17:21 | Editorial boerse-global.de
French prosecutors have opened several investigations after women reported being filmed covertly in public spaces by connected eyewear, a development that lands squarely on EssilorLuxottica — the Franco-Italian group that builds the hardware for Meta's market-leading smart glasses. The Paris prosecutor's office launched the proceedings on Tuesday, following complaints that recordings were made without the subjects' consent.
Under French law, violations of the right to one's own image carry penalties of up to two years in prison and fines reaching EUR 45,000. The child-protection organization e-Enfance had logged roughly twenty reports from affected women by early September, most of them involving Meta glasses. This month, the Paris cybercrime unit also tested the devices for other potential offenses, including the harvesting of sensitive crypto-wallet credentials.
The legal pressure is not confined to France. In the UK, early operators — among them the pub chain Wetherspoon — have imposed restrictions on smart-glasses use. Across the Atlantic, a lawsuit targets both Meta and Luxottica of America, alleging that human annotators reviewed user footage captured in changing rooms, restrooms, and during financial transactions after video was uploaded to servers for AI training. Meanwhile, the European Data Protection Board is preparing a report on the privacy impact of smart glasses, due in October 2026, that could shape future EU regulation. Meta maintains that a non-disableable indicator light warns bystanders and that cameras shut off when obstructed, yet political pressure to harden safeguards at the design stage keeps building.
Deliveries Climb as the Duo Tightens Its Grip
The controversy arrives during a period of breakneck expansion. According to Counterpoint Research, global shipments of AI glasses jumped 263 percent year over year in the first half of 2026, with models sold jointly by Meta and EssilorLuxottica accounting for the bulk of the market — building on seven million units moved in 2025. Omdia puts the first-half figure at a record 4.2 million units, up 127 percent.
Should investors sell immediately? Or is it worth buying EssilorLuxottica?
For EssilorLuxottica, the segment has become a genuine growth engine. While the traditional vision-care business expands modestly, sales of the connected models have multiplied, and revenue from the co-developed AI frames nearly doubled in the second quarter. The company's Ray-Ban and Oakley brands alone shipped more than seven million connected glasses last year, per Counterpoint. Regulators' scrutiny of the built-in cameras has prompted the partners to make technical adjustments and to weigh versions without camera sensors for future models.
A Second Front in Hearing Tech
Beyond the Meta partnership, EssilorLuxottica is pushing deeper into medical technology. On Wednesday it unveiled Nuance Audio 2.0 Plus, the next generation of its over-the-counter hearing glasses. Aimed at adults with mild to moderate hearing loss, the device follows a predecessor that had already won FDA clearance. It pairs roughly ten hours of battery life with five amplification levels and, for the first time, supports phone calls through a connected handset.
Distribution in the United States runs through the company's own LensCrafters chain as well as specialist audiologists. At an entry price of USD 829, the product targets customers who want vision correction and hearing support in a single everyday accessory. Alongside its electro-acoustic upgrades, the model features self-tinting lenses. In the core optical business, the group is also advancing myopia management, a segment that grew 24 percent in the second quarter.
Fundamentals Solid, Stock Still Under Water
Operating metrics underwrite the ongoing investment in new segments. EssilorLuxottica posted total second-quarter revenue of EUR 7,692 million, a gain of 7.2 percent. Adjusted operating profit rose 15 percent in the first half at constant currency, and free cash flow topped EUR 1 billion over the same stretch.
That solid operating performance has only partly fed through to the share price. The stock added 2.0 percent on Wednesday to trade at EUR 147.70, yet it remains down 45 percent since the start of the year. Market participants are weighing the advances in AI and medical eyewear against broader headwinds in the global consumer environment. With a market capitalization of EUR 64.80 billion, the eyewear group faces the task of building out AI wearables on a legally secure footing — without letting reputational risk erode its high-margin traditional business.
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