Turkey is probing Meta Platforms (NASDAQ:META) for potential abuse of the social media giant’s dominant market position. According to Reuters, the country’s competition authority has placed interim measures on the data sharing between Meta’s Instagram and Threads platform.
In December, Turkey initiated a probe over potential competition law violations related to the linking between Instagram and Threads. The reason Meta had introduced Threads in the first place, was to address its direct competition with Elon Musk’s X (formerly Twitter). At that time, linking Instagram and Threads was seen as the fastest path to rack up user numbers for Threads. This feature gave Threads a readymade user base of two billion to bank upon.
Meta’s U.S. Legal Issues
For Meta, the move from Turkey is another challenge in its array of legal issues. Back in the U.S., the company is being probed by Federal authorities over its potential involvement in illegal drug trade. Specifically, the investigation involves focusing on content associated with illicit drugs being presented on Meta’s social media platforms.
Upcoming Elections
Amidst Meta’s legal challenges and multiple countries gearing up for elections, Meta announced its strategy to focus on combating misinformation and addressing the risks presented by Artificial Intelligence in preparation for the June 2024 European Parliament elections. This proactive approach indicates Meta’s commitment to tackling the issues surrounding fake news and maintaining visibility as global authorities scrutinize social media platforms.
What Is the Target Price for Meta?
Despite its fair share of regulatory challenges, Meta’s stock price has soared by a massive 145% over the past year. Overall, analysts give a Strong Buy consensus rating on Meta along with an average price target of $528.80, indicating a modest 9.2% potential upside in the stock.
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