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Key Takeaways
- Meta shares lost ground Monday amid reports of job cuts and indications the social media giant could face a probe by European regulators over its efforts counter disinformation.
- Depending on the outcome of such a probe, Meta could face significant fines under Europe’s Digital Services Act.
- Despite recent losses, Meta shares have gained about 22% since the beginning of 2024.
Meta Platforms (META) shares dropped 2.4% to $432.62 Monday amid reports of job cuts and indications the social media giant could face a probe by European regulators over its efforts counter disinformation.
Meta Could Face EU Probe
The European Commission could soon launch an investigation of the parent of Facebook, Instagram, and WhatsApp for how it handles disinformation from Russia and other countries ahead of elections later this year, the Financial Times reported.
Depending on the outcome of such a probe, Meta could face significant fines under Europe’s Digital Services Act.
Meta did not immediately respond to a request for comment and the European Commission declined to provide a statement.
Layoffs Ahead
Separately, Meta’s Oversight Board, an independent group that oversees content on its platforms, advised some workers of potential layoffs ahead, the Washington Post reported.
The Post noted that Chair Stephen Neal suggested “targeted cuts” would further optimize the board’s operations by “prioritizing the most impactful aspects of our work.”
Despite Monday’s losses, Meta shares have gained about 22% since the beginning of 2024.
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