The European Union (EU) is likely to investigate Meta Platforms’ (NASDAQ:META) Facebook and Instagram due to concerns that the company is not doing enough against disinformation, particularly from Russia and other countries, according to a Financial Times report.
EU’s Regulatory Stance on Meta
Regulators in the EU have deemed Meta’s content moderation inadequate in halting the spread of political advertising that could undermine the electoral process. EU officials are also concerned about Meta’s platforms’ handling of Russia’s efforts to disrupt upcoming European elections. Another concern is that the company’s system for users to flag illegal content is not accessible or user-friendly enough to meet the standards set by the EU’s Digital Services Act.
The EU’s Digital Services Act, approved in April last year, includes various measures to compel platforms to disclose the actions they are taking to combat misinformation and propaganda. If Meta is found to be in violation of the law, the EU could impose a fine of up to 6% of the social media giant’s global annual turnover.
The investigation is likely to begin with Meta’s report from last year on its handling of disinformation risks on its platform, in conjunction with the EU’s assessment.
Is Meta a Good Stock to Buy?
Analysts remain bullish about META stock, with a Strong Buy consensus rating based on 40 Buys, two Holds, and one Sell. Year-to-date, META has increased by more than 20%, and the average META price target of $547.45 implies an upside potential of around 26% from current levels.
