Meta Plunges 3.56% Amid EU Fine, Apple Scrutiny

On April 4, 2025, Meta's stock experienced a significant drop of 3.56% in pre-market trading, reflecting the market's response to recent regulatory actions and legal challenges faced by the company.

Meta has been fined 7.98 billion euros by the European Union for bundling its Facebook Marketplace service with its extensive social network, marking the first time the tech giant has faced antitrust penalties from the EU. The EU Commission has ordered Meta to cease tying its classified ad service to Facebook's social media platform and to avoid imposing unfair trading conditions on competitors in the second-hand goods market. This decision comes after an investigation into how Meta leverages Facebook's billions of users to outcompete rivals, including using data from competitors advertising on Facebook to enhance its Marketplace service.

Meta has announced plans to appeal the decision, arguing that the penalty overlooks the realities of the thriving European market and protects established large companies. The company's response highlights the ongoing tension between regulatory bodies and tech giants over market dominance and fair competition practices.

Additionally, Meta is facing scrutiny from Brazil's antitrust regulator, Cade, over Apple's App Tracking Transparency (ATT) feature. Meta has accused Apple of applying double standards in data handling, allowing its own apps to collect user data freely while requiring third-party apps to seek user permission. This controversy has led to a significant drop in user data tracking, impacting Meta's ability to deliver targeted advertising.