Connect with us

Hi, what are you looking for?


Meta Platforms could face a big penalty

Meta Platforms Inc (NASDAQ: META) is in the red on Monday after the European Commission took an issue with Facebook Marketplace.

Meta stock down on possibility of a hefty fine

According to the region’s executive arm, Meta Platforms is abusing its supremacy in online classifieds in ways that violates the antitrust regulations of the European Union.

Meta ties its online classified ads service with Facebook, which gives Facebook Marketplace a substantial distribution advantage that competitors can’t match. Second, it unilaterally imposes unfair trading conditions on competing services which advertise on Facebook or Instagram.

If substantiated with sufficient evidence, the tech behemoth could face up to $11.8 billion worth of penalty. That’s about 10% of its global yearly revenue.

Meta Platforms has denied these allegations the regulator made in its statement of objections. Nonetheless, they added to the long list of headwinds that have the Meta stock down about 65% for the year.

But will it remain the same next year? Not necessarily – said Ranjan Roy (Editor at Margins) this afternoon on CNBC’s “TechCheck”.

Roy explains what 2023 might look like for Meta

One of the primary reasons why Meta Platforms came crashing down this year is because it continues to overspend on the “metaverse”. According to Roy, though, that could change in 2023.

I think Zuckerberg will deprioritise his metaverse dreams in 2023. Today, their CTO (Andrew Bosworth) posted Meta will spend 18% to 20% [on it]. It’s the first time you’re seeing an admission that there’s a limit to how much they’ll spend.

Even part of that spending, he added, will go to artificial intelligence-driven content discovery that actually benefits the company’s core business. Roy expects the shift also because it will position the multinational to capitalise on the Twitter fallout.

I don’t think Zuckerberg won’t take the opportunity because no longer is Facebook the bad guys. Suddenly, every advertiser who’s had concern around content moderation see that it can be a lot worse.

He’s convinced that it will be a meaningful catalyst for the Meta stock if CEO Mark Zuckerberg so much as hints a refocus on the core business.

The post <strong>Meta Platforms could face a big penalty</strong> appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.