Meta Faces Investigation in France Over Alleged Unfair Advertising Practices

Meta Platforms faces investigation in France over allegations of exploiting its dominant position in the online advertising market. The regulator, Autorité de la concurrence, claims that Meta restricted access to ad verification partnerships with opaque, discriminatory, and unfair terms. The investigation is expected to last several months, with interim measures in place until a final decision is made. Meta is also facing a trial in Spain and antitrust mandates in the EU.

Meta Platforms, Inc., the parent company of Facebook and Instagram, is facing an investigation by the French Competition Authority (Autorité de la concurrence) over allegations of exploiting its dominant position in the online advertising market. The regulator claims that Meta has restricted access to ad verification partnerships with opaque, discriminatory, and unfair terms [1].

The investigation, which originated from a 2022 complaint by ad platform Adloox, will last several months. During this period, Meta is required to implement interim measures, including the development and disclosure of updated guidelines governing access to and maintenance of "viewability" and "brand safety" partnerships. These new criteria will remain in effect until a final ruling is issued.

This latest development is part of a broader pattern of legal troubles for Meta in Europe. The company is also facing a trial in Spain after more than 80 media companies accused it of unfair competition in advertising, worth €551 million ($596.15 million). Additionally, Meta is under scrutiny from the European Court of Justice and the European Data Protection Board for violating GDPR and EU laws in its targeted advertising practices [1].

Institutional investors have also been active in Meta's stock. During the first quarter of 2025, several wealth management firms adjusted their positions in Meta Platforms' stock. Jackson Wealth Management LLC, for instance, decreased its holding by 4.9%, while other firms like SwitchPoint Financial Planning LLC and McGlone Suttner Wealth Management Inc. increased their stakes [2].

Analysts have provided mixed ratings for Meta Platforms. While Raymond James Financial and JMP Securities have cut their target prices, Oppenheimer and Barclays have raised their estimates. Overall, the stock has an average rating of "Moderate Buy" with an average price target of $727.95 [2].

Despite these challenges, Meta Platforms reported strong earnings for the first quarter of 2025, with earnings per share of $6.43, beating the consensus estimate by $1.10. The company also announced a quarterly dividend of $0.525, representing an annualized dividend of $2.10 [2].

References:

[1] https://www.emarketer.com/content/meta-hit-with-investigation-france-exploiting-ad-market-dominance

[2] https://www.marketbeat.com/instant-alerts/filing-jackson-wealth-management-llc-has-685-million-stock-position-in-meta-platforms-inc-nasdaqmeta-2025-07-11/