Shares of Meta Platforms slipped approximately 1% in extended trading Tuesday, closing at $671.01, as the social media giant confronted fresh regulatory challenges in key international markets.
European Legal Setback
A German court has directed Meta's Edge Network Services unit to pay Deutsche Telekom roughly €30 million for network services. The dispute involves internet peering points and is part of a broader push by European telecom operators to have large technology firms contribute more to network infrastructure costs. Meta stated it "fundamentally disagreed" with the decision and is considering its legal options.
Stringent New Rules in India
Separately, the Indian government has imposed a stringent new requirement for social media platforms, slashing the deadline for removing unlawful content from 36 hours to just three hours after official notification. The rule takes effect February 20. Legal experts have expressed concern about feasibility, with one partner at Panag & Babu noting the timeline is "practically impossible" for companies to meet. Meta declined to comment on the new regulation.
The stock's after-hours decline contrasted with a mixed session for broader U.S. indices, where the Nasdaq Composite also closed lower. Investors are balancing optimism about artificial intelligence-driven growth against increasing regulatory scrutiny and legal expenses across the technology sector.
Meta continues to face legal headwinds in multiple jurisdictions. In Europe, the company is contesting antitrust charges related to its WhatsApp Business API, while in the United States, it faces lawsuits alleging harm to minors. Despite these challenges, market observers note that strong advertising performance and convincing demonstrations of AI monetization could help the stock overcome regulatory turbulence over time.
