Meta Platforms Inc. saw its shares rise 2.4% to $677.23 in extended trading Monday, after fluctuating between $657.00 and $683.25 during the regular session. The movement followed news that European Union antitrust authorities have intensified an investigation into WhatsApp's artificial intelligence policies.
Regulatory Pressure Mounts
EU officials are reportedly considering interim measures that could force Meta to open its WhatsApp messaging service to third-party AI assistants before their formal investigation concludes. This development stems from a policy change implemented in mid-January that restricted WhatsApp to Meta's proprietary AI assistant, effectively locking out competing services.
EU Competition Commissioner Teresa Ribera stated the Commission aims to prevent dominant companies from unfairly favoring their own products and is evaluating rapid actions to maintain competitive conditions during the probe. Meta could face remedies altering its product operations and potential fines reaching 10% of its global annual revenue if found in violation.
Market Context and Broader Implications
The stock's advance occurred alongside a broader technology sector recovery, reversing some losses from last week's AI-related selloff. Keith Lerner, Truist Advisory Services' chief investment officer, noted that "a sharply oversold market" can experience significant sentiment shifts with modest positive developments.
Investor attention now shifts to upcoming U.S. economic indicators, with January employment data scheduled for Wednesday and Consumer Price Index figures due Friday. Both reports could influence interest rate expectations and impact high-valuation technology stocks.
Meta maintains that numerous AI alternatives exist and argues regulators overestimate WhatsApp's Business API as a critical distribution channel for chatbots. Meanwhile, the company continues product development, with Instagram reportedly testing an internal ephemeral photo application called "Instants."
