Meta platforms (Nasdaq: Meta) Stock loses ground on Wednesday. The share price of the tech giant decreased by 2% from 2 p.m. and had fallen by 2.9% earlier in the daily session.
The appreciation of Meta moves lower after news that the WhatsApp reports platform will fall under new regulations in the European Union. Despite a modest pullback today, the shares have risen around 48.5% in the past year.
In a submission submitted on 14 February, Metatlatforms revealed that it had around 46.8 million average monthly active users on his WhatsApp platform during the six-month period closed on 31 December. While growth for WhatsApp is good news in many ways, the service is now above 45 million user threshold, which means that platforms fall under the Digital Services Act of the European Union. A spokesperson for the European Commission confirmed that WhatsApp would now be subject to the tighter regulations that are delivered to the “very large online platform” designation under the law.
The WhatsApp service from Meta is still not officially referred to as a large platform, but it is likely that it will be included in the category in the very near future. As a result, the service will be subject to stricter extent -and monitoring policy. The shift also gives users more control over their data privacy on the platform and closes some options for generating income for meta.
Although the upcoming legal shift for WhatsApp is not favorable for Meta, it is also not surprising and does not represent a material divergence in the company’s long -term provision. As a message platform, the costs of the content of content must be relatively low compared to other types of social media platforms – and Meta is already dealing with the large online platform indication for its Facebook and Instagram services in the EU
Recent comments from national leaders of EU countries also suggest that the supranational organization will soon be able to switch to create more lax regulatory standards for the technical industry. Even if that does not affect WhatsApp in a meaningful way, it is likely that new regulations that apply to the service will become a small footnote for Meta within a year.
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