Meta Platforms Inc. saw its stock decline modestly on Tuesday following regulatory developments in the European Union. Shares fell 0.2% to $675.62 during morning trading as investors assessed potential antitrust implications.
EU Antitrust Warning
The European Commission has formally warned Meta that it may order the company to remove restrictions preventing competing artificial intelligence assistants from operating on WhatsApp's business platform. Regulators sent a statement of objections, citing competition concerns over rules implemented on January 15 that currently make Meta AI the exclusive assistant permitted under WhatsApp's business terms.
EU competition chief Teresa Ribera indicated regulators are considering interim measures—temporary orders that could force changes while investigations continue—to prevent what they describe as potential "irreparable harm" to competition in Europe's digital markets. The Commission can impose fines up to 10% of a company's annual global revenue for antitrust violations.
Privacy Fine Challenge Proceeds
In a separate development, the EU's highest court ruled that WhatsApp can proceed with challenging a €225 million ($268 million) privacy penalty. The fine was originally imposed by Ireland's data protection authority and later increased following intervention by the European Data Protection Board. WhatsApp has criticized the decision-making process, referring to the board as an "unelected authority."
Meanwhile, analysts continue to focus on Meta's user engagement metrics. Citizens analyst Andrew Boone noted that "Instagram's global time spent has grown by 18% year-over-year or faster for the past six months," with January showing a 19.2% increase. The brokerage maintains a Market Outperform rating with a $900 price target.
Meta has informed investors of plans to maintain significant spending throughout 2026, prioritizing artificial intelligence development, Reels, discovery engine improvements, wearables, and infrastructure expansion. Traders are monitoring the company's formal response to EU regulators and awaiting upcoming U.S. economic data, including labor statistics and the January consumer price index report.
